You have paid off your mortgage... now you need to cancel it at the registry
22/06/2023
Relief, pride, a sense of freedom... this combination of emotions will probably accompany you when, finally, often after decades, you pay the last instalment of your mortgage.
To put the icing on the cake, we will now explain the different steps you should to finally say goodbye to your mortgage.
Even if you have repaid the loan, the debt will still appear at the Land Registry. When you first purchased of the property, you signed both the purchase and the loan deeds before a notary, and both were recorded at the Registry.
Although cancellation of a mortgage is not mandatory, it is advisable. You can take care of the paperwork yourself, and save the administrative agency feesAbre en ventana nueva, or entrust it to the bank with which you took out the mortgage.
The costs of cancelling your mortgage are as follows:
- Notary and registry expenses
Mortgage cancellation fees are regulated by Royal Decree-Law 18/2012, of 11 May 2012. The exact amount will depend on the amount of the loan.
- Administrative agency fees
They will depend on the rates applied by each agency, since they are not limited by law.
- Early Mortgage Repayment Fee
During this year, the early repayment of variable-rate mortgage loans is exempt from fees, according to Royal Decree-Law 19/2022Abre en ventana nueva, which provides help for citizens with mortgages.
For fixed-rate loans (and starting next year for variable loans if the norm declines), in the event of early repayment, the bank may charge a fee, which will vary depending on whether the mortgage dates from before or after June 2019.
