Mortgage Cancellation
There are few things that last a lifetime, and a mortgage is certainly not one of them. When does a mortgage end? Whenever you want, you only have to do two things: finish paying and cancel the mortgage.
Paying off your mortgage is just one part of the process and the costs you must assume. The costs of cancelling your mortgage go beyond paying off the loan and have nothing to do with the bank. Do you want to know how much it will cost you to say goodbye to your mortgage? Let's take a look!
The cost of mortgage cancellation is divided into four different expenses. They are the following:
Mortgage cancellation fees
Notary fees
The cancellation of the mortgage must be done by means of a public deed. Don't you know what that means? Basically, you need a notary to certify the transaction.
This will generate a notarial fee that is regulated by law and has a minimum cost of 90 euros.
Registration fees
The mortgage will also have to be cancelled in the Property Registry in what is known as the mortgage lifting. This serves to make the house appear free of letters or debts. If someone asks if your house is mortgaged, you will be able to prove that it is not. This is very important if you decide to sell your house.
Registration fees are also regulated by law and their minimum cost is 24 euros.
Administrative expenses
This is an optional expense. No one can force you to have a manager take care of all the paperwork, not even the bank.
The agent will help you make everything more agile and quick. However, it will also make the costs of cancelling the mortgage higher. How much? That will depend on the agent you choose. If it is the bank that suggests the agency to use, don't forget to look for an alternative, even if only to compare prices.
The approximate cost of this procedure is 300 euros.
Early cancellation fees
Do you have to pay the bank to cancel the mortgage? As a general rule, no. The bank may charge a fee if it handles the paperwork for the agency or if you choose to cancel the mortgage early.
This is what is known as paying off the mortgage early. The early repayment fee is regulated by law. Depending on when you signed the mortgage, it will be higher or lower.
For example, for variable rate mortgages after June 16, 2019, this fee may be 0.25% for the first three years or 0.15% for the first five.
If the bank's role is only to give you the documentation that proves that the loan has been paid or that a bank representative goes to the notary's office, they could not charge you anything. 
Can mortgage cancellation fees be avoided?
If you want to sell your mortgaged house and save yourself the costs of cancelling the mortgage, you can request a mortgage subrogation of the debtor. Don't you know what it involves? It's very simple: it serves to change the holder of the mortgage.
This way, the mortgage will be in the buyer's name and you won't have to worry about how much it costs to cancel a mortgage.
And what if you also want to buy a new house? Well, it's very easy! We have a mortgage for house exchange specially designed for you.
It could also be the case that you simply want to improve your mortgage . If you are looking for a better mortgage, you can request a creditor subrogation, which consists of changing the mortgage bank, or cancelling your mortgage to sign a new one.
With the first option you will pay the subrogation fees and with the second the cancellation fees that you have just seen. It may also be that you are thinking about cancelling your mortgage because you have fallen in love with an undeveloped plot of land, or you want to change the air of the city for that of the countryside and are thinking of building your own house. If this is the case, be sure to take a look at our mortgage to build a house with which to build the home of your dreams. Dreaming is free!
