Paying off entire mortgage, don’t want to mess it up

[randar]

My mortgage is due for renewal in December and like many others I’ve decided it’s preferable to pay it off entirely instead of renewing at the current interest rates.

I’ve never sent an amount of money of this size before so I just want to make sure I’m doing it right. I’m guessing there will be paperwork to do with a notary or lawyer?

Any tips or references would be greatly appreciated! P.S. I’m located in Quebec.

 

[rhandi]

@randar We went to Royal Bank and asked how much we owed if we paid it off today.

They gave us the exact amount.

Went to TD and got a bank draft for that amount and returned to Royal Bank, and gave them the bank draft.

That was it.

 

[gingerberry]

@rhandi Congratulations. You'll notice tomorrow morning when you wake up that your lawn has never looked greener.

 

[rhandi]

@gingerberry Thank you, been a few years now but yes you are correct. The 1st of the month is still the best time, a constant reminder that no money is due for rent or mortgage.

 

[heatherpedz]

@rhandi Hah.. I went to my bank at one point to ask that, and they told me I'd have to pay a fee/penalty for paying off the mortgage early. I pushed back because I was allowed to pay down 5% (10%? I forget the exact number) of my principal every year as a lump sum, and this amount I was paying was within that 5%. But no, if I paid off as part of my lump sum, I'd have to pay a fee.

"Ok then, well if I owe $45,000, what happens if I pay $44,999 right now and then let my next regularly scheduled payment take care of the remaining dollar?"

"Well... I guess, uh.. That would be ok?"

That's exactly what I did. No fees for discharging, etc. Nothing. Got a letter saying I was free and clear, and that was it.

 

[isaacnewton]

@heatherpedz Yep when I worked for the bank I told clients to do that all the time. Discharge fees are ridiculous.

 

[rootuchiha]

@heatherpedz how long did it take to get your letter?

 

[heatherpedz]

@rootuchiha If I recall correctly, I had to chase them down a bit for it, but it wasn’t too long. It helped that my insurance agent was directing me along the process. She was trying to get me a break on my home insurance by getting proof the bank no longer had a claim on my house, and she knew how to work through the system to get the info she needed.

 

[rootuchiha]

@heatherpedz Thanks for the reply.... I learned yesterday there is a reduction on home ins when paid off, I have been waiting since Jan 3rd for my paperwork I'm in ON

 

[heatherpedz]

@rootuchiha Damn!! I think I ended up just showing my ins. agent a printout of my mortgage account from my online banking tool, and that was good enough for her.

Helps that she’s a family friend, so she could push things along a bit easier since there was a level of trust there already.

 

[rootuchiha]

@heatherpedz Mortgage was via TD so is my home ins.

Time to shop around.

 

[solina]

@heatherpedz I did the exact same thing last week! Called to ask about discharge fees for when my renewal comes il in a couple months and ended up transferring the remaining amount (less $1) on the phone.
I’m not getting a discharge done though. Too many scams in the last few months with people selling homes out from under the owners. With the bank having a legal claim on paper, it’s just one more obstacle for any scammer in the future.

 

[friendlycat]

@rhandi When I did this I just used a personal cheque.

 

[friendlycat]

@rhandi Ah. Cibc charges me.for that. I've found Scotia is fine with personal cheques, this is the main reason I still have any.

 

[rhandi]

@friendlycat It's one of those things included with the monthly account fee which is waived if you keep a minimum balance. So either way, still paying for it one way or another.

 

[asjasj123]

@rhandi Was there a fee to discharge the mortgage?

 

[rhandi]

@asjasj123 To be honest I don't remember. If there was, it was included in the final number they gave us.

So excited to pay it off lol wasn't concerned if there was a fee.

 

[asjasj123]

@rhandi Congrats. Almost there myself. Will have about 125k remaining on my next renewal in March and tempted to just pay it off. Again congratulations to you!

 

[stuzky]

@asjasj123 Easy decision to pay it off at these rates. You'll have absolutely no regrets. Throw it all in.

 

[rhandi]

@asjasj123 Thank you. You as well. It's been a few years now (5) but so glad to have it over.