How to prove that the mortgage has been paid off?
Paying off a mortgage is a dream moment for many homebuyers, but how to prove this fact after paying off the loan can be confusing to many. This article will introduce in detail the certification process, required materials and precautions after the mortgage is paid off to help you successfully complete this important step.
1. Basic process after paying off the mortgage loan
Once the mortgage is paid off, the borrower will need to complete the following steps to officially prove that the loan has been paid off:
| steps | Specific content |
|---|---|
| 1. Confirm loan settlement | Contact your bank or lending institution to confirm that the last payment has been received and the loan balance is zero. |
| 2. Obtain a settlement certificate | The bank will issue a "Loan Settlement Certificate", which is one of the most important documents. |
| 3. Mortgage release registration | Bring relevant materials to the real estate registration center to go through the mortgage release procedures. |
| 4. Receive other warrants | The bank will return the Certificate of Other Rights to the borrower. |
| 5. Update real estate certificate | In some areas, it is necessary to update the property certificate and remove the mortgage registration information. |
2. List of required materials
When applying for mortgage settlement certificate and mortgage release registration, you usually need to prepare the following materials:
| Material name | Remarks |
|---|---|
| Original and copy of ID card | Borrower himself |
| Loan settlement certificate | issued by bank |
| Certificate of other rights | Documents kept by the bank |
| Original real estate certificate | If there is mortgage registration, it is required to provide |
| Repayment bank card | Used to verify identity |
| Letter of authorization (if acting as an agent) | Notarization required |
3. Differences in handling in various regions
The procedures for handling mortgage settlement certificates may differ in different regions. The following is a comparison between major cities:
| city | Handling agency | special request |
|---|---|---|
| Beijing | District real estate registration centers | Reservation required in advance |
| Shanghai | Real estate transaction centers in various districts | Can apply online |
| Guangzhou | Guangzhou Real Estate Registration Center | Instant settlement |
| Shenzhen | District real estate registration centers | Tax payment certificate required |
| Chengdu | Chengdu Real Estate Registration Center | Can be processed by mail |
4. Frequently Asked Questions
Q: How long does it take to get the settlement certificate after the mortgage is paid off?
A: Under normal circumstances, the bank will issue a settlement certificate within 3-5 working days after confirming the arrival of the last repayment.
Q: How long does it take to cancel the mortgage registration?
A: The processing time varies from place to place, and it usually takes 3-10 working days.
Q: Can I entrust others to handle it?
A: Yes, but a notarized power of attorney and the trustee’s ID card are required.
Q: What will be the impact if the mortgage is not released?
A: The property is still under mortgage, which may affect subsequent transactions, inheritance and other rights and interests.
5. Things to note
1. Confirm with the bank in advance: Different banks may have slightly different procedures for issuing settlement certificates, so it is recommended to consult in advance.
2. Keep all vouchers: including repayment records, settlement certificates, etc. It is recommended to scan electronic copies for backup.
3. Pay attention to timeliness: Some cities have timeliness requirements for mortgage release registration, and it is recommended to handle it as soon as possible.
4. Check the real estate certificate information: After the mortgage is released, it should be confirmed that the mortgage information on the real estate certificate has been eliminated.
5. Credit report update: After the loan is settled, it usually takes 1-2 months for the credit report to be updated.
6. Latest policy developments (hot spots in the past 10 days)
According to recent hot topics, many places have introduced convenience measures to simplify the process of mortgage settlement certificates:
| area | new policy | Implementation time |
|---|---|---|
| Hangzhou | Launched the "Hot Loan Settlement One Thing" joint service | November 2023 |
| Nanjing | Issuance of electronic settlement certificate online | November 2023 |
| Wuhan | Cancellation of mortgage release registration fee | November 2023 |
Paying off a mortgage is an important financial milestone in life. Only by correctly handling the settlement certificate and mortgage release procedures can you ensure that the property is completely returned to your name. I hope this article can provide you with clear guidance and wish you success in completing all procedures!
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