05 Feb Finally Mortgage-Free! But… How Much Does It Cost to Cancel It Legally?
After years of effort, you’ve finally paid off your mortgage. It’s a huge relief—but before you fully celebrate, there’s one last important step: legally cancelling the mortgage. While this procedure isn’t mandatory, it’s highly recommended if you plan to sell your property in the future or apply for a new loan.
What Does It Mean to Cancel a Mortgage?
Cancelling a mortgage means removing the registered encumbrance from the Land Registry. Even if the debt is paid off, your property will still appear as mortgaged unless this legal step is completed.
How Is It Done?
The process involves three basic steps:
- Request a zero-debt certificate from your bank.
- Take the certificate to a notary to issue the cancellation deed.
- Submit the deed and the IAJD form (Model 600)—which is exempt from payment—to the Land Registry.
In about two weeks, the cancellation will be officially registered, and your property will appear free of encumbrances.
How Much Does It Cost?
If you do it yourself, it costs around €125, including notary and registry fees. If you opt for the management (‘gestoría’) service, the cost is around €200 to €400.
What If You Want to Switch Banks?
In that case, the mortgage is also cancelled to issue a new one with another financial institution. This more expensive process includes notary fees, property appraisal, and possibly early repayment penalties. The total cost can exceed €2,500, depending on the loan amount and interest rate.
Is It Mandatory?
No, but it’s strongly advised. Not cancelling your mortgage can complicate future property sales or affect your creditworthiness.
At Barcelona Flat Hunter, we recommend planning this step in advance. Legally cancelling your mortgage not only closes a chapter—it clears the way for future opportunities without obstacles.
