Is bank participation required for mortgage cancellation?

Legally it is not mandatory, but it is highly recommended. When you finish paying the mortgage, the bank gives you the certificate of zero debt, but the mortgage remains registered in the Property Registry with all its legal effects until it is formally canceled.

Consequences of not canceling it:

• When selling the property, the buyer will see the mortgage in the Registry and will demand its prior cancellation (or retention of the price to cancel it)
• It is impossible to apply for a new mortgage on that property without canceling the previous one
• In general, any operation on the property becomes complicated

When does the mortgage prescribe? Mortgages prescribe after 20 years from the due date of the last amortization installment, if the enforcement action has not been exercised. But this period is very long to wait.

The costs of the mortgage cancellation in the registry are:

• AJD (Documented Legal Acts): Exempt since 2018 for mortgage cancellations. You do not have to pay this tax.
• Notarial fees: Regulated by tariff. For a mortgage between 100,000 and 200,000 euros, notarial fees usually range between 90 and 150 euros.
• Property Registry: Between 24 and 90 euros, depending on the mortgage capital.
• Management costs: If you contract the management with the bank, it may charge between 300 and 1,000 euros. With Notaría Online, the process is more economical.

In total, the cost of canceling the mortgage on your own (without using the bank's agency) usually ranges between 150 and 350 euros.