A Canadian Discharge of Mortgage (also known as a Discharge of Charge in Ontario’s Land Titles system) is a legal document that formally releases a property from the mortgage lien or charge after the borrower has fully repaid the mortgage loan. When a property owner takes out a mortgage, the lender registers a charge against the property’s title at the provincial Land Titles Office. This charge remains on title until the mortgage is paid off and a formal discharge is registered.

In Ontario, the discharge process is governed by the Land Registration Reform Act (R.S.O. 1990, c. L.4) and Ontario Regulation 688/16, which prescribes the electronic form for Discharge of Charge/Mortgage. The document is submitted electronically through the Teraview system by the lender’s authorized solicitor. In British Columbia, discharges are filed with the BC Land Title and Survey Authority under the Land Title Act (R.S.B.C. 1996, c. 250). In Alberta, the discharge is registered under the Land Titles Act (R.S.A. 2000, c. L-4) through the SPIN2 electronic system.

The discharge confirms that the complete mortgage obligation, including all principal, interest, penalties, and fees, has been satisfied. Once registered, the discharge removes the mortgage charge from the property’s certificate of title, clearing the title for the owner. For federally regulated financial institutions, the Bank Act (S.C. 1991, c. 46) and the Financial Consumer Agency of Canada guidelines require lenders to process discharges within a reasonable time after full repayment.

A Discharge of Mortgage is needed whenever a mortgage loan has been fully repaid and the borrower wants the mortgage charge removed from the property’s title. The most common scenario is when a homeowner makes their final mortgage payment and wants to confirm that their property is free and clear of the mortgage lien.

This document is also essential when the property is being sold and the seller’s mortgage must be discharged before or at closing to provide the buyer with clear title. In a typical Canadian real estate transaction, the seller’s lawyer arranges for the discharge of the existing mortgage on the closing date, using proceeds from the sale to pay off the remaining balance. The discharge is then registered electronically at the Land Titles Office.

Other scenarios requiring a discharge include mortgage refinancing, where the existing mortgage is paid off with proceeds from a new mortgage and must be discharged before the new charge can take priority; mortgage transfers between lenders, where the original lender discharges their charge when the mortgage is assumed or transferred; and estate administration, where an executor must clear mortgage charges on estate properties. Without a properly registered discharge, the mortgage charge remains on title indefinitely, which can complicate future sales, refinancing, or title insurance. The Financial Consumer Agency of Canada advises borrowers to confirm that their lender has processed the discharge after paying off their mortgage.

Every Canadian Discharge of Mortgage must identify the mortgagee (lender) and mortgagor (borrower) with full legal names, entity types, and addresses. The document must reference the original mortgage by its registration or instrument number, the Land Titles Office or Land Registry where it was registered, the date of registration, and the original principal amount.

The property description must include the municipal address, province, postal code, and the Property Identification Number (PIN) in Ontario or Parcel Identifier (PID) in British Columbia. The legal description should match the registered title to ensure proper identification when the discharge is filed.

The discharge declaration is the core component, confirming that the full mortgage amount including principal, interest, and all associated charges has been entirely satisfied. The mortgagee must represent and warrant that no further claims or obligations remain. The direction to register instructs the Land Titles Office to remove the charge from the property’s title.

Witness provisions may be required depending on the province. In Ontario, the electronic registration system requires the solicitor to confirm that the discharge has been properly authorized. The governing law clause should reference the province where the property is located. The discharge date establishes when the formal release takes effect. In provinces governed by the Interest Act (R.S.C. 1985, c. I-15), the lender must comply with federal rules regarding interest calculations and discharge timing. The Bank Act (S.C. 1991, c. 46) imposes additional obligations on federally regulated financial institutions regarding timely processing of mortgage discharges.