Buying a brand new car through financing is easy because there will always be a bank, an automotive dealer or an automotive sales executive who will assist you in this process. But do you know what to do after you have fully paid your auto loan?
Here are the steps to do after full payment of your “AUTO LOAN”
1) RELEASE OF CHATTEL MORTGAGE and ORIGINAL LTO CERTIFICATE OF REGISTRATION with OFFICIAL RECEIPT (Encumbered)
Go to the Head Office of the Bank that financed your auto loan and claim the following documents (expect to pay
the Notary Fee)
a) Release of Chattel Mortgage and copy of Promissory Note
b) Original LTO Certificate of Registration (CRE) and Official Receipt (OR)
Processing Time: I suggest that you call the bank first. Find out when they can release the above documents.
I just paid-off my auto loan with Union Bank of the Philippines. They have advised me that I could get the Release of Chattel Mortgage & the original LTO Certificate of Registration (Encumbered) at their Head Office in Ortigas after 10 working days.
RCBC Savings Bank – Tel #s 555-8772 / 555-8700
Banco De Oro – Tel #s 688-1288 / 68801468 ask to be connected to SFU [Service Fulfillment Unit]
BPI Family – Hotline – Tel # 89-100 – follow voice prompt for options
PSBank – Hotline – Tel # 845-8888
Union Bank of the Philippines – Hotline – Tel # 84-186 or 841-8600
2) CANCELLATION OF CHATTEL MORTGAGE
Go to the Register of Deeds in your area of residence, submit the “Release of Chattel Mortgage with Promissory
Note”. (there is a minimal fee to paid here).
The Register of Deeds will issue you the cancelled Chattel Mortgage.
Processing Time: Cancellation of Chattel Mortgage varies with every City and Municipality. There was a time when you can receive the cancelled Chattel Mortgage within one day. In fact, I assisted a client to get his at the Register of Deeds in Mandaluyong City and we only waited for an hour. My husband and I assisted another client to get his at the Register of Deeds in Quezon City and he was advised to come back after 3 working days.
3) UNENCUMBER THE ORIGINAL LTO CERTIFICATE OF REGISTRATION
Go to the LTO Agency that issued your LTO Certificate of Registration.
You can find this information at the heading of your LTO Certificate of Registration.
You need to bring the unit for inspection and stenciling. (There are corresponding Fees for this procedure)
a) Submit your “Release of Chattel Mortgage” that has been duly stamped “cancelled” by the Register of Deeds
and your OR of payment for the Cancellation
b) Surrender your “ENCUMBERED” Original LTO Certificate of Registration
c) The LTO Agency will release a new LTO Certificate of Registration to you that no longer has the word
“ENCUMBERED” on it.
Processing Time: Please ask the LTO Agency you are dealing with, if you could wait for the Unencumbered LTO CR or if not, when can you return for it.
4) You now have your original LTO Certificate of Registration. Keep it properly.
Keep your original LTO Certificate of Registration and the latest LTO Official Receipt with your personal
documents in a secured place. Keep a copy of these in your vehicle. You are now the proud owner of a
unencumbered vehicle. SMILE! 🙂
TIPS AND UPDATES:
a) Where to claim your Original Encumbered LTO CR/OR & Release of Chattel Mortgage –
RCBC Savings Bank Head Office – RCBC Savings Corporate Center 25th 26th St Bonifacio Global City Taguig
Union Bank Philippines – UnionBank Plaza Meralco Avenue cor. Onyx & Sapphire Sts. Ortigas Center, Pasig
BPI Family Savings Bank – BPI Family Savings Bank Building 109 Paseo De Roxas Corner Dela Rosa Street, Makati,
Metro Manila Makati Metro Manila
PSBank – PSBank Center 777 Paseo de Roxas Avenue corner Sedeño Street Makati City, Philippines 1226
Banco de Oro Unibank – BDO TOWER beside the Podium ADB Avenue, Ortigas Center, Pasig City
(Across DISCOVERY SUITES)
b) Time-saving Tips
1. After you have received your Cancellation of Chattel Mortgage, you can have
your LTO CR unencumbered when you renew the LTO registration of your vehicle.
2. Provincial Residents – those who purchased their unit here in Metro Manila with fully paid auto loans.
You can call the numbers stated above, request the bank to send your Release of Chattel Mortgage
and LTO OR/CRE to their branch nearest you. After you have received them, then you can proceed
to step # 2 – Cancellation of your Chattel Mortgage by going to the Register of Deeds in your area of
c) For your auto loan payment concerns, you can also call the numbers stated in this blog.
d) Do you want to buy another brand new car? Save time with effortless shopping
online at http://www.auto-searchphilippines.com
– All popular brands with monthly updated vehicle prices and promos. Our group will be happy to assist you.