(Your Bank Might Not Proactively Tell You This!)
When you’ve fully paid off your mortgage, auto loan, or personal loan, make sure to collect these 5 critical documents from your Canadian lender:
- ✅ No Objection Certificate (NOC)
Also known as a Loan Clearance Certificate. It confirms that your bank has no objection and your liability is cleared. - 📄 Loan Closure Confirmation Letter
This is a formal letter from the bank confirming the loan account has been officially closed. - 📊 Final Repayment Statement
This shows the last payment details, total interest paid, and the final balance—essential for tax and credit file purposes. - 🏡 Release of Collateral / Discharge of Security
If your loan was secured (like a mortgage or car loan), make sure the bank releases the security interest (e.g., lien on property or vehicle). In Quebec, this may involve a “radiation” (discharge) process. - 📜 Original Loan Agreement
Retrieve your original loan contract for your records, in case of future disputes or audits.
🔍 Why It Matters in Canada:
- Ensures your credit report is accurately updated.
- Helps avoid future legal or financial complications.
- Essential if you’re planning to sell an asset (like a home or car) that was under collateral.
Conclusion:
Closing a loan in Canada isn’t just about making the final payment — it’s about wrapping up the process legally and financially. By collecting these five key documents, you protect yourself from future disputes, ensure your credit file is clean, and maintain proper records for tax or resale purposes. Don’t rely on the bank to remind you — be proactive and request everything in writing. It’s your right, and it’s your responsibility.
