--- title: How Does a Mortgage Discharge Work for Hard Money Loans description: A mortgage discharge is the process of officially releasing the lender's claim on the property title once the loan is paid off. Below are the different ways in which a borrower can discharge their loan. --- [Skip to content](https://learning.addyinvest.com/how-does-a-mortgage-discharge-work-for-a-borrower#main-content) English Show submenu for translations ![addy logo.png\]](https://learning.addyinvest.com/hs-fs/hubfs/logos%20-%20addy/addy%20logo.png?height=40&name=addy%20logo.png) Open main navigation Close main navigation - English Show submenu for translations - [Go to addyinvest.ca](https://addyinvest.ca/) [Go to addyinvest.ca](https://addyinvest.ca/?hsLang=en) Hello 👋 How can we help you? - There are no suggestions because the search field is empty. 1. [addy Help Centre](https://learning.addyinvest.com/?hsLang=en) 2. [Hard Money Loans](https://learning.addyinvest.com/hard-money-loans?hsLang=en) 3. [For Borrowers](https://learning.addyinvest.com/hard-money-loans?hsLang=en#for-borrowers) # How Does a Mortgage Discharge Work for Hard Money Loans ## A mortgage discharge is the process of officially releasing the lender's claim on the property title once the loan is paid off. Below are the different ways in which a borrower can discharge their loan. ### 1. **Discharge as Part of a Property Sale or Re-financing** If the borrower is discharging the mortgage due to selling the property or refinancing with another lender, the process involves: - The borrower’s notary or lawyer contacts the lender (us) to request a **payout statement**, which shows the total amount required to pay off the loan. - The lender prepares the payout statement, which includes: - The remaining loan balance, - Any missed payments, - - Any and all administrative fee for the discharge, and - Other applicable charges - The lender's legal fees for processing the discharge, which are **$595 (inclusive of taxes and all fees)**, are also added to the payout amount. - On the payout date, the borrower’s notary/lawyer sends the required funds to the lender. - After receiving the payout, the lender provides the notary/lawyer with a **discharge document** signed by a designated director or authorized individual. - The funds are then deposited into the lender's account, minus the legal fees, and the loan is officially discharged from the property title. ### 2. **Direct Payment by the Borrower** In some cases, the borrower may choose to bypass their notary or lawyer and pay the loan directly. In this scenario: - The borrower contacts the lender directly to request a payout statement. - The borrower saves on their own legal fees by avoiding the need for third-party representation. - Once the lender receives certified funds, they instruct their legal team to register the discharge. - It is important to use **certified funds** (such as a bank draft or certified cheque) to prevent issues with bounced payments, ensuring the discharge process is secure and complete. - Upon receiving payment of the full amount, the lender registers the discharge without the involvement of the borrower’s notary or lawyer. ### Important Notes: - The borrower can choose between these options depending on their needs, whether involving their legal team or saving on fees by working directly with the lender. - It is crucial that the discharge is only registered once the lender has received full payment to avoid any issues with the release of the mortgage from the property title. By understanding these options, borrowers can choose the most suitable method for their mortgage discharge, whether through a notary/lawyer or directly with the lender.   **Wiring Instructions** - Bank Name: **TD Canada Trust** - Account Name: **1340291 B.C. 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