When you finish paying off a mortgage loan, the satisfaction of reaching an important financial goal is immense. However, many people are unaware that the process doesn’t end with the final payment. There is still a crucial step remaining: the formal cancellation of the mortgage with the Public Registry of Property, a key procedure to ensure that your home is completely free of liens.
In this guide, we explain what mortgage cancellation is, why it matters, and how you can complete this process with professional support—such as that offered by Coldwell Banker.
What is Mortgage Loan Cancellation?
It is the legal process through which the mortgage lien on a property is removed. Even if you have made all your loan payments, your house is still legally “mortgaged” until this step is completed. The lien is registered with the Public Registry of Property and must be removed so that you have full legal ownership of your property.
This procedure ensures that the property is free of any obligations to the financial institution and is essential if you wish to sell, bequeath, or re-mortgage your home.
Who Can Start the Process?
The process can be initiated by the property owner or, in some cases, by the bank or financial institution. However, in most situations, the owner must take the first step by requesting a cancellation instruction letter from their bank, also known as a release letter.
Required Documents
To cancel a mortgage loan, you will need the following documents:
- Mortgage cancellation instruction letter – Issued by the financial institution.
- Property deed – Showing the registered lien.
- Valid official ID.
- Proof of loan payment (if applicable).
- Payment of registration fees.
- Notary public fees.
Once you have these documents, you must go to a notary public. The notary will prepare a mortgage cancellation deed and register it with your local Public Registry of Property.
How Much Does It Cost to Cancel a Mortgage?
The cost may vary depending on the state, but typically includes:
- Notary public fees
- Registration fees with the Public Registry
- Bank administrative costs
As a general reference, the process can cost between $5,000 and $15,000 MXN. Some banks offer promotions or cover part of these costs, so it’s a good idea to check directly with your financial institution.
How Long Does the Process Take?
The time frame depends on the workload of the Public Registry and the notary handling the process. Generally, it can take between 2 and 6 weeks. It’s important not to delay this step, especially if you’re planning to sell or pass on the property soon.
Why Is It Important to Cancel Your Mortgage?
Even if you no longer owe the bank, if the lien is still legally registered, your home remains “encumbered.” This can complicate transactions such as:
- Selling the property
- Refinancing
- Using it as collateral
- Inheritance procedures
At Coldwell Banker, we’ve seen cases where sales were delayed for months because this process wasn’t completed in time. Our advice is simple: cancel your mortgage as soon as you finish paying it off.
How Can Coldwell Banker Help?
As real estate experts with a presence throughout Mexico, Coldwell Banker guides you step-by-step through the mortgage cancellation process. Whether you’re planning to sell your home or want to regularize your property situation, our advisors can help you:
- Review your property’s documentation
- Connect with reliable local notaries
- Coordinate with your financial institution
- Prepare for a smooth, surprise-free sale
Additionally, if you’re thinking about selling your now-unencumbered property, we can help you get the best value for it, advise you on the local market, and connect you with qualified buyers.
Cancelling your mortgage loan is a crucial legal step to gain full ownership of your property. It’s not complicated, but it does require time, paperwork, and knowledge of the process. With the support of a Coldwell Banker advisor, you can handle it efficiently and without issues.
Have you finished paying your mortgage? Schedule an appointment with one of our advisors and make sure your home is truly free and clear.
👉 Contact us today
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Gobierno de México – Cancelación de Hipoteca
