Even after fully repaying your home loan, you cannot sell the property or take out a new loan if the "mortgage" remains on the registry. The mortgage release procedure is an important legal process that should be performed immediately after full repayment. Let's understand the required documents, process, and costs accurately.
What Is a Mortgage? Why Does It Need to Be Released?
A mortgage is a right that a financial institution sets on real estate as collateral for a home loan. Even after the loan is fully repaid, it is not automatically released — a registry procedure is required.
You Cannot Sell Real Estate with an Unreleased Mortgage
Real estate with an unreleased mortgage is judged in the registry as "a home whose repayment has not been completed." Even if repayment is actually complete, you cannot sell with the mortgage still registered. It is important to perform the release procedure as soon as possible.
You Will Be Unable to Take Out New Loans
Rights recorded in Column B of the registry have priority order, and if the mortgage remains as first priority, you cannot take out a new loan. If you want to receive financing using real estate as collateral, you must first release the mortgage.
List of Documents Required for Mortgage Release
After full loan repayment, the financial institution will send the following documents.
- Registered Deed or Registration Identification Information: Documents from the time of mortgage setting. Before 2006, this was a registered deed (paper); thereafter, registration identification information issued online.
- Certificate of Registered Cause (Mortgage Release Certificate): Document proving loan repayment completion. The name varies by financial institution (e.g., repayment certificate). If the date field is blank, enter the final withdrawal date.
- Power of Attorney (Proxy Authority Certification): Document by which the financial institution delegates the registry procedure to the owner.
- Financial Institution's Qualification Certificate (Registry Certificate): The financial institution's registry. Becomes invalid 3 months after issuance, so proceed quickly after receipt. If expired, can be reissued at the Legal Affairs Bureau for 1,000 yen.
- Registration Application Form: Download and print from the Legal Affairs Bureau website, then fill in.
- Certificate of Registry Matters: Document verifying the registry content of real estate. Obtained at the Legal Affairs Bureau.
Procedure and Flow for Releasing a Mortgage
Proceed with mortgage release in the following steps.
Step 1: Receive Documents Sent by the Financial Institution
After full loan repayment, the required documents will be mailed by the financial institution. Keep them without loss, as all are necessary for the release procedure.
Step 2: Download and Fill in the Registration Application Form
Download the registration application form from the Legal Affairs Bureau website and fill in the required items. You can also obtain it by visiting the Legal Affairs Bureau directly.
Step 3: Gather All Required Documents and Apply a Seal
Prepare all documents and apply a seal using the stamp used on the registration application form to the application form and revenue stamp sheet.
Step 4: Apply at the Competent Legal Affairs Bureau
Apply at the Legal Affairs Bureau with jurisdiction over the location of the real estate. Mailing is also possible, but if you visit in person, booking a registry consultation in advance allows document confirmation and corrections, saving revision effort. After application completion, a seal is required to receive the registration completion certificate.
Step 5 (Optional): Entrust to a Judicial Scrivener
Those who lack time or are anxious about the procedure can leave it entirely to a judicial scrivener. The typical cost is approximately 10,000–20,000 yen.
When Should the Mortgage Release Be Completed?
There is no legal deadline for mortgage release, but for the following reasons, we recommend proceeding as soon as possible after full repayment.
- The financial institution's qualification certificate has a validity period (3 months)
- You can respond smoothly at the time of sale, inheritance, or refinancing
- You can maintain registry information consistency and prevent future issues
Property owners and investors holding investment real estate should also refer to How to Use Second Opinions in Real Estate Investment.
Frequently Asked Questions (FAQ)
Q. What happens if I leave the mortgage release unaddressed?
There is no legal penalty, but it will cause problems when selling real estate, during inheritance, or when taking out a new loan. Also, if the financial institution's qualification certificate expires, it will need to be reacquired.
Q. How much does mortgage release cost?
If you do it yourself, the cost is only the registration license tax (1,000 yen per property). If you entrust it to a judicial scrivener, an additional fee of 10,000–20,000 yen applies.
Q. Is the release procedure the same for jointly owned real estate?
For jointly owned property, information from all co-owners is required. The procedural flow is the same, but care is needed in document preparation.
Q. Can I apply online?
You can also apply online using the Legal Affairs Bureau's "Registration and Deposit Online Application System." However, preparation such as an electronic signature is required.
Q. What if a mortgage remains on inherited real estate?
Even if the deceased failed to perform the procedure after full loan repayment, the heir can release it through the same procedure. However, if the financial institution has dissolved or merged, separate confirmation is required.
