Very often we hear people securing home loan to purchase a property, but little knew on the procedures that one needs to know once payment of home loan has been made in full. Sit back and read up as we will share with you some knowledgeable insights for you to hold on to in this journey.

1. Notify your Bank / Financier

Once you have made up your mind to pay the home loan or mortgage loan in full, do contact the relevant Bank / Financier for the payment arrangements. Bear in mind that different Bank / Financier may have different procedures and SOP to be adhered to when it comes to remittance of money, especially in bulk. In event of doubt, always check with the relevant branch or officer of the Bank / Financier you are dealing with to avoid unnecessary issues from arising.

2. Choose a Good Lawyer

Selection of a legal firm is significant to ensure a smooth process of discharge and reassignment of the property. What is discharge and what is reassignment of property? Let’s refresh your memory to get a better understanding. When the Borrower secured a mortgage loan or home loan from the Bank / Financier to part purchase a property, the owner of the property automatically gave a temporary control over the property to the Bank / Financier as a collateral. When the Borrower then make full repayment of the home loan of the property to the Bank / Financier, the Bank / Financier must discharge and reassign all their rights on the property back to the owner of the Property. This entire process is to be conducted by a lawyer and that is why it is vital for you to engage a good property lawyer to handle the case at hand.

3. Preparation of Documentation

Besides payment settlement, there are also paperwork to be completed. Usually there are forms and templates prepared by the Bank / Financier to be executed by the Borrower to proceed further. During this stage, the Bank / Financier may also ask the Borrower if they have any preferred lawyer to attend the matter at hand and if you have any preference, do inform the Bank / Financier as they will then issue a letter of instructions to the particular legal firm to act for the case. Other than Bank / Financier, the appointed legal firm will also draft out reassignment / discharge documents for the Borrower to execute and at this stage, the Borrower should be able to coordinate with their appointed lawyer on information and requested documents related to the property to facilitate the whole process altogether.

4. Reassignment / Discharge Process

After the documentation process has been completed, the lawyer will attend to the reassignment and discharge of charge procedure. Reassignment process will take place upon registration of the Deed at the relevant High Court coupled with a revocation of Power of Attorney previously signed by the Bank / Financier and the Assignor. As for the discharge of charge, it will be concluded at the respective land registry with the previous charge on the property being removed and the same shall be reflected on the Issuance Document of Title.

5. Retain of Original Documents

Last but not least, upon completion of the whole process, you should be receiving all your original documents in relation to the mortgage loan for the property from your lawyer. Do not forget to verify on the documents received before acknowledging any letters because it is also your duty to cross check in any event. Do not hesitate to ask questions in case you are unsure of the documents involved and received from the lawyer.

We hope that the easy-to-understand steps and information will be beneficial to you not only as a guidance but also as a checklist should you have thoughts of making any full settlement for your mortgage loan or home loan anytime soon.