How to pay off a mortgage: necessary documentation

To cancel the mortgage is the dream of every mortgagor. A long process that, depending on the conditions to which it is subject, can take more than 30 years. However, it is essential to know how to act correctly when the time comes.

From KM2 Real Estate Services we have collected everything you need to know about the cancellation of a mortgage. Take note!

Mortgage cancellation

The cancellation of the mortgage is understood as the last step necessary to terminate a mortgage loan. A procedure that informs the public administrations that the property is yours and that the loan has been paid in full.

There are two ways to carry out this procedure. You can do it through the bank or by yourself.

Cancellation of the mortgage through the banking entity

You will have to ask the corresponding bank to issue the so-called ”certificate of zero debt”, which certifies that you have finished paying the mortgage.

In itself, it is a very simple procedure and the bank should offer it to you free of charge. But, it is necessary to keep in mind, that the additional procedures with the agency that come after the request of this document, can suppose an important disbursement.

Canceling the mortgage on your own

If you decide to cancel the mortgage independently, you will have to carry out some formalities:

• Ask the financial entity for the certificate of zero debt, in which it is stated that you have finished paying the debt.
• Go to a notary and fill out a cancellation deed. It must be signed by you and a representative of the bank.
• To fill in and to present before the Tax Agency the Tax of Legal Acts.
• To go to the Registry of the Property with the cancellation deed, the receipt of the Tax of Legal Acts and the form of lifting of load.
• Request a simple note at the Registry, which will assure you that your charges have been released and the process has been completed correctly.

Why cancel a mortgage?

Although it is not considered a mandatory procedure, we recommend that you do it.

Otherwise, the debt continues to be registered in the Land Registry for twenty years, which has serious consequences when renting or selling your property, even delaying the operation for several years.

Now that you know how to correctly cancel a mortgage, in KM2 Real Estate Services we want to take part of the process.

We have more than 41 years of experience in the real estate sector and we are very knowledgeable about the market. Our team of advisors will be happy to help you.