In order to process the cancellation of the mortgage, according to the mortgage law in Spain, once the debt is repaid to the bank, simply making the last payment does not mean it is cancelled. The loan continues to exist in the property registry during the following 20 years, when it would be cancelled automatically, unless the owners take action to cancel it.

Although cancelling the mortgage is not obligatory, not doing so can cause small problems in the future. For example, if we wanted to sell the dwelling, it would have to be cancelled at the time of drawing up the deed, otherwise it would not be free of encumbrances and this could signify an important delay.

What steps have to be followed to cancel a mortgage fully?

1. Request from the bank the Certificate of zero debt: a free document that accredits you have finished repaying the mortgage.
2. Deliver the certificate of zero debt to the notary in order to sign the public instrument of cancellation of the loan. The agency or notary expenses will depend on the initial amount of the loan.
3. Request and fill out the document of Documented Legal Acts (IAJD) in a delegation of the Tax Administration (Hacienda) of your autonomous region. It is a mandatory step that is free of charge.
4. In order to make the cancellation effective, go to the Property Registry with a copy of the tax, the certificate of zero debt and the deed. With this last step you will register the cancellation of the mortgage in the registry and any encumbrance on the registered property will no longer exist. The registry fees will depend on the value of the mortgage.