Who contacts the lender to discharge the mortgage?

Who contacts the lender to discharge the mortgage?

“Who contacts the lender to discharge the mortgage?” — The clear, no-fluff answer that will save you time and money.

Quick Answer: Who Contacts the Lender to Discharge the Mortgage?

Short answer: your lawyer or notary acts on your behalf and contacts the lender to arrange and register the mortgage discharge. If you’re refinancing, selling, or paying out a mortgage in Milton, Ontario, the lawyer representing the borrower or the new lender will handle the formal request and registration with the Land Registry.

This is the part most homeowners miss: you can start the conversation, but the legal and registry work is executed by a licensed professional to protect your title and ensure the lender’s security interest is properly removed.

Why this matters for Milton, Ontario homeowners

Milton’s market moves fast. Closings are tight. If the discharge isn’t handled correctly, you face delays at closing, extra fees, and stress. The lender won’t remove the mortgage from title until the payoff is confirmed and the discharge document is properly registered. That registration is typically done electronically through Ontario’s land registry system (Teraview) by a lawyer or notary.

Get this wrong and buyers won’t get clear title. Refinances stall. Sales collapse. You lose leverage.

Who initiates the discharge and when?

• If you’re selling your home: your seller’s lawyer initiates contact with the lender to request a payout statement and then arranges the discharge at closing.
• If you’re refinancing: your new lender’s lawyer coordinates with the current lender for the payout and discharge.
• If you’re paying off the mortgage outright: you, or your lawyer/notary, request a payout statement from the lender and then arrange registration of the discharge.
• If there’s a sale handled by buyer’s lawyer/title company: the seller’s lawyer still must ensure the mortgage is paid out and removed before or at closing.

In every scenario, the lawyer or notary does the paperwork and interacts with the Land Registry. You don’t walk into the Land Registry and register the discharge yourself.

Step-by-step: How the mortgage discharge process works (Milton-focused)

1. Request a payoff or payout statement

• The party responsible (usually the seller or borrower) asks the lender for a payoff figure with an expiry date.
• Expect a small admin fee. Lenders give a payoff figure that includes interest up to a certain date and any discharge or prepayment penalties.

1. Lawyer reviews the statement and confirms instructions

• Your lawyer checks for additional charges (broken-term penalties, late fees) and confirms funds are correct.

1. Funds are assembled for closing

• On closing day, the lawyer collects funds from sale proceeds, the borrower, or the new lender.

1. Lender receives payment and issues discharge document

• Once the lender confirms full payment, they issue a discharge or release of mortgage.
• Most major lenders in Ontario will provide an electronic discharge or an electronic authorization for counsel to register the discharge.

1. Lawyer registers the discharge with the Land Registry

• The lawyer uses Teraview or local registry tools to register the discharge against the property title.
• After registration, the mortgage is removed from title and the buyer receives clear title.

1. Title insurance and final reporting

• The lawyer provides final closing statements and confirms registration. If title insurance was used, the insurer is updated.

Timeline: expect 3–10 business days from payoff request to registered discharge in straightforward cases. If there are penalties, older mortgages, private lenders, or second charges, it can take longer.

Who pays for the discharge and what are the costs?

• Lender discharge fee: many lenders charge an admin or discharge fee. That’s often paid by the seller or borrower who requested the discharge.
• Lawyer/notary registration fees: lawyers charge for their time and the registry registration fee.
• Real example in Milton: total typical out-of-pocket cost is usually $100–$400 for standard bank mortgages; private mortgages and second mortgages can be higher.

Always ask your lawyer for a written estimate before closing.

Special cases to watch in Milton

• Second mortgages and HELOCs

• A first mortgage discharge won’t clear a second mortgage or HELOC. Each secured charge must be paid and discharged separately.

• Private or out-of-province lenders

• These lenders may use paper discharges and can delay registration. Plan for extra days and coordinate early.

• Closed-term mortgages with penalties

• If you’re breaking a fixed-rate mortgage, expect an early repayment penalty. Ask for the exact payout on the day you plan to close.

• Condo vs freehold

• Condo closings often have stricter timelines. Your lawyer must confirm the condominium status certificate and ensure the mortgage discharge aligns with condo closing requirements.

• Title irregularities

• Old liens, unregistered owners, or missing documents can block discharge. Title insurance can protect you, but your lawyer must handle exceptions.

Local logistics: Land Registry and electronic registration in Milton/Halton

Ontario uses electronic land registration systems. In Halton Region (which includes Milton), most discharges are registered electronically by lawyers using Teraview. That means a licensed conveyancer or lawyer will handle the filing and secure the removal of the lender’s charge on title.

If you’re selling in Milton, your real estate lawyer will coordinate all calls to the lender, request the payout, receive the discharge, and register it. That’s why a local lawyer experienced with Milton transactions matters.

How I protect Milton buyers and sellers during discharge (what a top realtor and team do)

I work with local lawyers who:

• Request payoff figures early
• Confirm any prepayment penalties and factor them into closing funds
• Communicate daily with lenders on closing day
• Confirm registration on title before final disbursement

That prevents last-minute surprises and protects proceeds for sellers and clean title for buyers.

Common mistakes that delay discharge — and how to avoid them

• Waiting until closing day to request a payout statement. Do it 7–10 days before closing.
• Not confirming second charges or liens. Always order a title search early.
• Assuming the lender will automatically remove the mortgage. Lenders require confirmation of payment and a formal registration step.
• Using a lawyer unfamiliar with the local registry procedures. Use a Milton/Halton lawyer with solid experience.

Avoid these and your closing will finish on time.

Call to action — if you’re selling, buying or refinancing in Milton

If you’re in Milton and need a straightforward, no-nonsense guide through payoff and discharge, call the local team that coordinates lawyers, lenders, and closings every day. I’ll connect you with proven Milton conveyancing lawyers and walk you through the payout, discharge fees, and timing so your sale or refinance closes on schedule.

Contact: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca

FAQ — Fast answers to common voice-search questions about mortgage discharge in Milton, Ontario

Q: Who contacts the lender to discharge the mortgage?
A: The borrower’s or seller’s lawyer/notary initiates contact and arranges the discharge. The lawyer requests a payoff, ensures payment, and registers the discharge on title.

Q: How long does a mortgage discharge take in Ontario?
A: Typical electronic discharges take 3–10 business days from the payoff request, but allow more time for private lenders or multiple charges.

Q: Can I contact the lender myself to discharge the mortgage?
A: You can request a payoff figure, but the actual discharge and registration must be done by a lawyer or notary to remove the charge from title.

Q: What if I have a HELOC or second mortgage?
A: Each registered charge must be paid and discharged separately. Confirm all liens during the title search and clear them before closing.

Q: Who pays the lender’s discharge fee?
A: Typically the borrower or seller requesting the discharge pays the fee. Your closing statement will list the amount.

Q: Will title insurance cover problems with discharge?
A: Title insurance can protect against unknown title defects, but it doesn’t replace the need for a proper discharge registration. Discuss details with your lawyer.

Q: What if the lender refuses to issue a discharge?
A: Lenders only issue a discharge after full payment or according to the terms of the mortgage. If there’s a dispute, your lawyer will negotiate or escalate.

Q: Do I need to be in Milton for the discharge?
A: No. Discharges are handled by your lawyer electronically. You can be anywhere, but coordinate timelines and funding.

Q: How can I speed up the discharge process?
A: Order the payoff early, work with experienced Milton lawyers, and confirm no secondary liens exist. If refinancing, have the new lender’s lawyer coordinate with the current lender ahead of time.

If you want a guaranteed checklist for your closing day, or you want me to connect you to a top Milton conveyancer, email tony@sousasells.ca or call 416-477-2620. I handle the busy calls, the fine print, and the coordination so you don’t lose the sale or the closing date.

Note: This post is informational and not legal advice. Always consult a licensed lawyer or notary for legal steps on mortgage discharge in Ontario.