The retailer had tried to make the HomesinAsda service work but was forced to make the decision as it did not fit in with Asda's low-cost and efficiency credentials, said a spokesman.
"We gave it a good, long shot and even changed the model to try and make it work," he said.
"When we launched the service, we had our own team within Asda running the branches. Then last year, we changed the model to work with estate agents. The idea was to run it efficiently and at a low cost but it just wasn't working."
The service was trialed in 20 Asda stores in the South East and North East of England as well as on its website.
The decision was amicably negotiated, said the spokesman, although Asda would consider offering mortgages and other services again in the future.
Asda launched the service in 2006, claiming it would slash the cost of selling houses.
Touchscreens were placed near the pilot stores' entrances, enabling shoppers to view houses or leave their details for a rep to follow up.