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You’ve paid off your mortgage, now what?

Qué hacer una vez finalizada la hipoteca

After years and years of paying instalments, the time has finally come, you are going to pay the last instalment of your mortgage. But I’m sure you are wondering, what do I do now, what should I do once it’s finished?

The truth is that you no longer have any debt with your financial entity, but that does not mean that you have finished with your mortgage because it is still registered and this can cause some problems, so you have two options:

Do nothing

The registry will cancel it by itself, after 20 years (that is nothing); that is to say, before that time, for any financial procedure that you want to carry out, the information will still be there, you will still have a mortgage.

In case you want to sell it or take out a new mortgage on it, the property will not be registered as “free of charges”.

Cancellation of the mortage in the registry

In this case, the financial institution can be entrusted with this procedure, which will not be free of administrative costs due to the associated formalities; or we can do it ourselves, saving part (but not all) of the cost:

1.   Request, free of charge, a certificate of zero debt from our financial institution (the mortgage company).

2.   Go to a notary to request a public deed of cancellation of the mortgage. This must be signed by the representative of the entity that granted the mortgage who will be notified by the notary (200-300€).

3.   Fill in the form for the Tax on Documented Legal Acts (Form 600) at the Tax Office of our Autonomous Community (free of charge).

4.   Go to the Land Registry of the postcode of our property and hand in the documentation (100-200€ depending on the value of the property).

To make sure that everything has been done we should ask for a nota simple from the registry (10€).

As you can see it is not a difficult process and it will save us some money that, after all these years paying the mortgage, will come in handy to invest in a decoration that will put it in another dimension or in anything else we need.

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