The Hidden Costs of Paying Off Your Mortgage: What You Need to Know

Mortgaged people look forward to the arrival of the payment of the last installment of the debt that will mean that the payments for this loan finally end. But what many don’t know is that They still have some more paperwork that entails their corresponding expenses.

It is important to bear in mind that paying all the installments of a mortgage does not mean the end, since, like the mortgage, it was registered in the Property Registry, registration will have to be canceled of it, an expense that for a mortgage of 150,000 euros It can be around 1,000 euros.

This procedure it’s not mandatorybut it is the only way that the home associated with the mortgage appear free of charge. Not doing so can cause long-term problems, since in the Nota Simple it will continue to appear as a house with charges.

How a mortgage is canceled

Once it’s been financially settled the debt of the mortgage with the bank, it is necessary to proceed to its cancellation in the Land Registry. The bank itself usually offers to carry out this procedure through an independent agency upon payment.

The truth is that It’s not an overly complicated process. and you can do it yourself, in this way the expense will be lower, since the agency is saved and you will only have to face the notary and registration expenses.

To manage the cancellation of the mortgage in the registry, they must follow the next steps:

• Request a bank zero Debt Certificate, with which it will be demonstrated that the debt is settled.
• Once obtained it is pwill file at the notary to handle the processing of the deed of cancellation.
• present the model 600 Cancellation of mortgage for the payment of the Tax of documented legal acts
• Submit to the Land Registry the Deed of Cancellation of the mortgage together with a copy of the tax payment and the certificate of debt (the latter is usually included in the deed.

After this last step, all you have to do is wait for the Property Registry to contact you to collect the documents and proceed to pay them.

What expenses are there when you finish paying the mortgage

The amount to pay for the cancellation of the mortgage will depend to a certain extent on the amount of the mortgage. The notary and registration expenses for a mortgage of 150,000 euros would have a cost between 300 and 400 euros, as reported in the real estate portal Fotocasa.

To this must be added the tax payment which varies depending on the autonomous community, and if the procedure with an agency should be added between 300 and 500 euros more than what is usually charged for these services.