Registration cancellation of the mortgage: what is it, how is it done and how much does it cost?
Registration cancellation of the mortgage: what is it, how is it done and how much does it cost?
- The registration cancellation of the mortgage is an optional procedure that users can access once they have finished paying their mortgage loan to leave their mortgaged home free of charges.
- The cost of this procedure, which the user can carry out on their own or leave in the hands of the bank, is usually around an average of 1,000 euros, and includes notary, agency and registration costs.
- How long can you go without paying your mortgage?
The registration cancellation of the mortgage is a registration procedure that allows the mortgaged home to be left free of charges. This procedure, which is usually carried out when users have finished paying all their mortgage credit installments, serves to demonstrate that the debt with the lending bank has been settled and can be very useful whether the property is to be sold or purchased. You want to use the home as collateral to request a new loan.
This procedure is not mandatory, but optional, but it is still recommended to do so to prevent the bank from making any type of claim afterwards. To carry it out, users must follow the following instructions, compiled by the Bank of Spain itself on its website:
- Request the zero debt certificate from the lending bank, a document that certifies that the mortgage has been paid off. The bank must deliver the document to us immediately and free of charge.
- Deliver the zero debt certificate to a notary. In this case, we must decide if we will carry out the procedures ourselves on our own or if they will be carried out by the bank. In the event that we want the bank to take care of the process, the entity may charge us the commissions and expenses corresponding to the processing, although it must previously inform us of the costs. Within these costs, however, you cannot include the signature process or the trip to the notary.
- Request and complete the document of Documented Legal Acts (IAJD) in a delegation of our autonomous community. Despite being a mandatory step, users are exempt from paying this tax.
- Once the copy of the tax, the zero debt certificate and the deed have been obtained, you must go to the Property Registry to make the cancellation effective. Depending on the value of the mortgage, registration fees or others will be assigned.
What are the costs of registering the cancellation of the mortgage?
Despite the fact that the registration cancellation of the mortgage is exempt from taxes, users must assume some costs to carry out this procedure, whether they carry it out on their own or if they decide to have the bank manage it. As pointed out by Helpmycash, the average cost of this process is usually around 1,000 euros, in case the user decides to take care of it on their own.
These costs, as pointed out by the buyer, are divided into three categories: notary fees, registration fees and agency fees. Notary expenses are those that include the price charged by the notary for preparing the cancellation deed and vary depending on the amount of the mortgage. On average, however, from Helpmycash they point to a cost of around 450 euros.
Registration fees represent the price the registrar charges to remove the mortgage lien on the home. As with notary fees, these fees are also calculated by applying a percentage to the original amount of the mortgage loan, so the cost will vary depending on the money we have requested from the bank. Even so, Helpmycash points to an average cost of 250 euros.
Agency expenses, for their part, refer to the price that the agency will charge for carrying out all this procedure. In this case, the price will depend on the rate of each company, and not on the amount of the mortgage loan. From Helpmycash they calculate that the average cost of these expenses is about 300 euros.
If we decide that the bank is the one in charge of proceeding with the cancellation of the registration, it is likely that we will have to assume commissions that increase the cost of the process. Therefore, it is recommended that, before proceeding with any procedure, we compare different options to find the one that best suits our interests.