Mortgage Payoff Request Letter for Canada

Mortgage Payoff Request Letter Template for Canada

A Mortgage Payoff Request Letter is a formal written document used in Canadian jurisdictions to request a final payoff statement from a mortgage lender. This document initiates the process of obtaining the exact amount required to fully discharge a mortgage, including the principal balance, interest, and any applicable fees or penalties. The letter must comply with Canadian federal banking regulations and provincial property laws, ensuring all necessary information is provided for the lender to process the request accurately and within the required timeframes. It serves as an official communication channel between the borrower and the lending institution, often used in preparation for property sales, refinancing, or early mortgage discharge.

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What is a Mortgage Payoff Request Letter?

The Mortgage Payoff Request Letter is an essential document in Canadian real estate transactions when a borrower needs to determine the exact amount required to fully discharge their mortgage. This document is commonly used in situations such as property sales, refinancing, or early mortgage payoff scenarios. The letter must comply with Canadian federal banking regulations, including the Bank Act and Interest Act, as well as provincial property laws. When drafting a Mortgage Payoff Request Letter, it's crucial to include specific details such as the mortgage account number, property address, requested payoff date, and borrower information. The document helps ensure accurate calculation of the final payoff amount, including all applicable fees, prepayment penalties, and per diem interest charges. It serves as the formal trigger for the lender to prepare the detailed payoff statement, which is necessary for completing the mortgage discharge process.

What sections should be included in a Mortgage Payoff Request Letter?

1. Sender Information: Full name, current address, phone number, and email of the mortgage holder(s)

2. Date: Current date of letter writing

3. Recipient Information: Lender's name, mortgage department, complete address

4. Mortgage Account Details: Mortgage account/reference number, property address, names on mortgage

5. Request Statement: Clear statement requesting mortgage payoff statement

6. Payoff Date: Specific date for which the payoff amount is requested

7. Contact Information: Preferred method of contact and when to reach

8. Signature: Signature of all mortgage holders listed on the account

What sections are optional to include in a Mortgage Payoff Request Letter?

1. Third-Party Authorization: Authorization for lawyer or other third party to receive payoff information, used when someone else is handling the payoff process

2. Urgency Statement: Statement indicating if expedited processing is required, used for time-sensitive transactions

3. Delivery Preference: Specific instructions for how to receive the payoff statement (mail, email, fax), used when specific delivery method is required

4. Reason for Payoff: Explanation of why payoff is being requested (sale, refinance, etc.), used when this might affect processing

5. Additional Account Numbers: References to other related accounts or loans, used when multiple accounts are involved

What schedules should be included in a Mortgage Payoff Request Letter?

1. Current Mortgage Statement: Most recent mortgage statement showing current balance and account details

2. Identification Documents: Copies of government-issued ID for verification purposes

3. Authorization Form: Signed authorization form if third party is involved

4. Property Tax Statement: Recent property tax statement if tax payments are not escrowed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Mortgage Document

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate

Legal Services

Mortgage Lending

Property Management

Financial Advisory

Insurance

Relevant Teams

Legal

Mortgage Operations

Real Estate Services

Credit Administration

Customer Service

Document Processing

Loan Administration

Account Management

Property Services

Financial Advisory

Relevant Roles

Mortgage Specialist

Loan Officer

Real Estate Lawyer

Mortgage Broker

Real Estate Agent

Banking Officer

Property Manager

Financial Advisor

Legal Assistant

Title Officer

Closing Coordinator

Credit Manager

Account Manager

Mortgage Administrator

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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