Many homeowners use lines-of-credit to borrow money, particularly when large loan amounts are needed/wanted. Once you pay off this kind of loan, there’s one more thing to What is it? Keep reading to find out!
For these larger loans, the creditor will probably want security for the debt. If you own a house, the creditor may use your home as security to ensure you pay back the loan as promised. This type of loan is called a “secured loan.” To safeguard its security, the creditor will formally register a charge against the title to your home, similar to how a mortgage works.
Once you have repaid the line-of-credit in full and decided you no longer need it, don’t forget to remove the charge from the title of your home (as it can be very difficult to sell your home with a registered charge still on it).
The law in BC requires the creditor to provide you with a discharge document when the debt is fully repaid and after you request the discharge. You have to pay the creditor to prepare this document (called a “Release”), but the maximum amount the credit grantor is allowed to charge under the law is $75.
With the Release document now in your hand, you can either file it yourself with your Land Registry Office or hire a lawyer or notary to do this for you. Please note that The Land Registry Office can charge you an administrative fee to file the release.
We hope this information was helpful!