What is the zero-debt certificate, and at what moment will they ask us? This document certifies that you no longer have mortgage debt with the bank. It is usually used when we have just paid a mortgage, requiring the certificate to proceed to the cancellation in the registry.
The dreamed moment, the daydreamed. The last payment arrives, the previous installment of the mortgage. At last, we took away that huge slab we have had for years or, instead, for decades. Finally, we cut that 30 or 40-year relationship with the bank. Finally, housing is ours and only ours. You already have zero debt; there are reasons to offer, right? You are right. But your prescribed debt is not the end, and there will still be a few steps before you take out the bottles to celebrate it.
What is the zero-debt certificate, and why do you use it?
The document stores the loan payment duration, fixed rate of interest, and the principal amount. Experts consider debt certificates as the safest investment than stocks and shares. No matter, who issues this certificate company, national government, or others, one can use it as per the duration before maturity.
When canceling a mortgage, the consumer must have a zero-debt certificate to save all the paperwork involving this management through a bank or a financial adviser. These procedures can exceed 200 euros. However, many choose to do all these efforts themselves and thus save that amount.
Many people want to cancel their mortgage from the registry when they manage to amortize it completely. Many of these people have come complaining about a standard banking practice: the bank intends to charge them for issuing the debt certificate. When going to the bank, it tells them that if you want to have this document, you must pay a commission, which in many cases can reach 120 euros. However, it is usually around 90 or 100 euros.
And not only that. Lenders put all kinds of obstacles. They tighten the rope alluding to the fact that they are complicated procedures. Insist the client that trying to convince him by all means, telling him that he will be charged for the declaration before a notary for the final extinction of the mortgage. It is an abusive commission. No bank is entitled to collect the debt certificate.
Is it mandatory to cancel the registration mortgage?
This question is important because many people do not know about it and, once their payment obligations are over, they relax and do not care. It’s not mandatory, and it’s practically a legal question. It should be done to save paperwork in the future if, for example, you want to make a transfer of a house or a farm or if you request another mortgage again.
Where can you get that certificate?
If you need a certificate that proves that you have zero debts, you must first go to the bank where you contracted the mortgage.
Once there, you must explain your situation and request the bank debt certificate. Once you have the zero debt document, you should go to a notary with it. After this, the bank representative must go to the office to declare extinction of the credit.
In this case, we emphasize again, and the bank must be obliged to make these arrangements. It would be billing a euro to its customers. It can happen when the Bank of the US itself has said that no entity is entitled to collect any amount for this type of procedure.
So that the bank can carry out the cancellation procedures of the mortgage registration, it is the client who has to give his consent. Consent must be prior and must be recorded utilizing their signature, including the permission to the bank to make the arrangements for them. But also the fact that the commissions are owed for that concept. But in those commissions, the issuance of the zero debt certificate can never be included.
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