Upon full repayment of a loan, what document does the mortgagor receive?

• A. Letter of satisfaction
• B. Deed of satisfaction
• C. Notice of default
• D. Mortgage discharge

Answer: (A)

When a loan secured by a mortgage is fully repaid, the lender provides a document confirming the debt is satisfied. This document, the letter of satisfaction, serves as proof that the mortgage has been paid off and the lien on the property is released. You’ll use it to clear the mortgage from the title records. In practice, a discharge may also be lodged with the land titles office to reflect the release, but the borrower typically receives the letter of satisfaction as the official confirmation. The other items relate to different situations: a notice of default appears when payments are missed, and a mortgage discharge is the formal recording of the release on title rather than the initial confirmation given to the borrower.