Who contacts the lender to discharge the mortgage?
Who really calls the lender to discharge the mortgage — and what Georgetown sellers must do to close clean, fast, and without surprises.
Quick answer: Who contacts the lender to discharge the mortgage?
Your lawyer or closing agent. They request the mortgage payout statement, organize the payout at closing, and register the discharge on title. You (the seller) authorize them, your realtor coordinates timing, and the lender issues the discharge once paid.
Why this matters for Georgetown, Ontario home sellers
If you’re selling a house in Georgetown, timing and paperwork decide whether the sale closes smoothly or stalls. A mortgage left unchecked becomes a lien on title. That lien must be removed — legally called a discharge — before (or at) closing, otherwise the buyer won’t get clear title and the sale can collapse.
Local nuance: most discharges in Ontario are registered electronically. Your lawyer uses Teraview (or the local land registration system) to register the discharge at closing. Knowing who handles which step keeps you from being the bottleneck.
The exact roles — who does what
- Seller: signs the authorization for payout and provides ID. Reviews the payout figure and signs closing documents.
- Seller’s lawyer or notary: contacts the lender, requests the payout statement (also called a redemption figure), instructs payment, obtains the discharge document, and registers the discharge on title.
- Lender (mortgagee): prepares the payout statement, confirms security release once funds are received, and issues the discharge or direction to register it.
- Realtor: coordinates timelines, ensures funds flow and documents are ready, and alerts buyer’s side if there’s a delay.
Bottom line: you don’t call the lender — your lawyer does it for you. That’s how real closings are executed in Georgetown and across Ontario.
Step-by-step mortgage discharge process for Georgetown sellers (clean, practical timeline)
- 60–30 days before closing — check your mortgage details
- Ask your realtor or lawyer to pull your mortgage account info.
- Confirm your mortgage account number, outstanding balance, and any prepayment penalties or break costs.
- 21–14 days before closing — request the payout statement
- Your lawyer requests a formal payout figure from the lender. This figure is time-limited (often valid for 7–30 days).
- The payout statement shows principal, accrued interest to a specific date, daily interest rate, any discharge fees, and penalties.
- 7–3 days before closing — confirm the number and gather funds
- Lawyer confirms final payout valid for your closing date.
- Seller arranges payment towards the mortgage via closing proceeds. If the mortgage is portable or being assumed, the lawyer coordinates those details.
- At closing — funds are transferred, discharge requested
- Lawyer sends funds to the lender. Upon receipt, the lender issues a discharge or sends authorization to the lawyer to register the discharge.
- The lawyer registers the discharge electronically with the land registry system.
- After closing — confirm title is clear
- The buyer’s lawyer confirms discharge registration and provides evidence of clear title.
- Seller receives final statements showing mortgage satisfied and discharged.
Common roadblocks and how to avoid them
- Surprise payout penalties: Some mortgages have early payout penalties. Ask for a redemption statement early. Negotiate payoff timing or factor the cost into your net proceeds.
- Missing paperwork or ID: Provide ID and signed authorization early. Lawyers must have signed directions to request payoff information.
- Power of attorney issues: If you appointed an agent, confirm the POA is valid for real estate and accepted by your lender.
- Lender delays: Lenders can take time to issue documentation. Start the payout request at least 10–14 days before closing in normal situations. For complex mortgage products or out-of-province lenders, allow more time.
Fees you should expect in Georgetown, ON
- Discharge administration fee: charged by the lender (varies, typically $100–$500).
- Registration/land transfer fees: lawyer charges for registering the discharge and closing documents.
- Legal fees: for the lawyer’s time to prepare documents, request payoffs, and register documents.
- Prepayment penalties: if your mortgage has them, they can be significant; get the exact number on the payout statement.
Plan these into your closing statement so there are no last-minute surprises.
Special cases — pay attention if any of these apply
- Refinancing simultaneously: if you’re refinancing and selling, confirm lender instructions carefully. Sometimes the new lender and old lender coordinate the discharge differently.
- Multiple mortgages or HELOCs: each mortgage or line of credit must be discharged or otherwise resolved. The lawyer obtains separate payout statements for each.
- Assignment or second charge: second mortgages must be paid out or negotiated. A second lender can delay discharge unless paid or subordinated.
- Power of Sale or default: if the mortgage is in arrears or under a power-of-sale process, urgent legal action is required. Contact your lawyer immediately.
Practical checklist for Georgetown sellers — avoid the last-minute scramble
- Give your lawyer a copy of your mortgage statement at listing.
- Ask your lawyer to request a payoff figure 2–3 weeks before closing.
- Confirm any penalties or release fees and budget for them.
- Bring government ID and signed documents to the lawyer early.
- Confirm who holds keys and possession dates in writing.
- Keep your realtor looped in on timing and paperwork.
Do these six things and you’ll close clean.
Why trust local expertise — advantages of using a Georgetown specialist
Local knowledge shortens timelines and prevents surprises. A Georgetown-focused realtor and legal team know:
- Typical lender response times when registering discharges at the local Land Registry Office.
- Nearby lawyers and notaries who specialize in residential closings and electronic registration (Teraview).
- Local quirks like seasonal closing congestion (spring and summer) that can create delays.
That’s why working with a team that closes deals in Georgetown every month matters. The right team prevents deals from slipping past closing because someone missed a payoff window.
How your realtor helps — it’s not just listing and negotiation
A top realtor does three things here:
- Coordinates timing between buyer and seller lawyers.
- Monitors payoff timelines and pressures them when necessary.
- Communicates unexpected costs or delays to you immediately so you can make decisions.
Your realtor won’t call to discharge your mortgage, but they make sure the lawyer does it on time.
Real example (anonymized) — fast close in Georgetown
A client in Georgetown listed with 30 days before possession. We asked the seller’s lawyer for a payout figure 14 days out. The first payout was valid for 10 days and included a prepayment penalty. We negotiated a closing date to match the valid payout window and the seller saved two-thirds of the estimated penalty by moving the closing by five days. Lawyer registered the discharge the same day funds were received. Deal closed clean.
That’s planning, not luck.
Final checklist for the day of closing (one-page)
- Confirm lawyer has received final payoff figures.
- Confirm discharge will be registered electronically the same day.
- Confirm funds for payout are available at lawyer’s trust account.
- Make sure possession and keys transfer instructions are written into the closing documents.
- Get a copy of the final statement showing mortgage paid and discharged.
If any one of these is missing, stop and fix it before you sign.
Need help in Georgetown? Fast, clear guidance available
Selling a home in Georgetown is simpler when your team knows how to get a mortgage discharged without surprises. For straightforward answers and coordinated closings, reach out:
Tony Sousa — Georgetown real estate specialist
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
Tony works with local lawyers who handle borrower authorization, request payout figures, complete the transfer of funds, and register discharges the same day funds clear. Get a clear timeline before you commit to a closing date.
FAQ — concise answers for Georgetown home sellers
Q: Who contacts the lender to request a mortgage payout?
A: Your lawyer or closing agent contacts the lender with your written authorization.
Q: How far in advance should the payout be requested?
A: Request 10–21 days before closing; complex cases need more time.
Q: Does the seller ever contact the lender directly?
A: Sellers can request information, but the formal payout and discharge registration is handled by the lawyer.
Q: How long after payment does the lender issue the discharge?
A: Typically within a few business days; many lenders provide immediate electronic direction once funds clear.
Q: Are discharge fees standard in Ontario?
A: Yes. Lenders charge an administration fee; lawyers charge registration fees. Ask for exact numbers early.
Q: What if there’s a second mortgage or HELOC?
A: Each secured charge must be satisfied or subordinated. Your lawyer will request separate payout statements.
Q: What if the mortgage is with an out-of-province lender?
A: Expect longer response times. Ask your lawyer to request payoffs earlier.
Q: How do I confirm the mortgage is removed from title?
A: The buyer’s lawyer confirms registration of the discharge. Request a copy of the register or confirmation from your lawyer.
Q: What if a lender refuses to issue a discharge?
A: That’s rare if funds are received. If it happens, your lawyer escalates to the lender’s legal department or uses court processes when necessary.
Want direct, local help? Contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Selling in Georgetown should be predictable. Do the paperwork, follow the timeline, and let professionals handle the lender. That’s how deals close on time.
