Discharge Fees — What It Costs to End Your Mortgage in Australia (2026)
A mortgage discharge fee is charged by your lender when you fully repay your home loan — whether by selling your property, paying it off in full, or refinancing to a new lender. It covers the administrative cost of releasing the mortgage from the property title. In Australia, discharge fees are unavoidable when ending a loan, but the amounts are regulated and generally not large.
What Is a Mortgage Discharge Fee?
When you take out a home loan, the lender registers a mortgage over your property as security for the loan. This mortgage is registered on the property title at the state land registry.
When the loan is fully repaid, the lender must formally discharge (remove) the mortgage from the title. The discharge fee covers:
- Lender’s administration cost of processing the discharge
- Preparation of discharge of mortgage documentation
- Electronic lodgement of the discharge via the land registry (PEXA)
How Much Are Discharge Fees?
| Fee Component | Typical Amount |
|---|---|
| Lender’s discharge fee | $150–$400 |
| Government mortgage discharge registration | $100–$250 (state-dependent) |
| PEXA electronic lodgement fee | ~$100–$120 |
| Conveyancer/solicitor disbursement | $200–$500 (if involved) |
| Total discharge costs | ~$400–$1,200 |
The lender’s discharge fee is set by the lender. The government registration fee is set by the state land registry. Both are payable when you exit the loan.
Discharge Fee by Lender Type
| Lender Type | Typical Discharge Fee |
|---|---|
| Big Four banks | $300–$395 |
| Online/digital lenders | $0–$300 |
| Non-bank lenders | $150–$350 |
| Credit unions/mutuals | $100–$300 |
Discharge fees have been declining in recent years — competitive pressure and the shift to electronic settlement (PEXA) has reduced the administrative cost. Some online lenders now advertise $0 discharge fees.
When Do Discharge Fees Apply?
| Situation | Discharge Fee? |
|---|---|
| Selling your property | Yes — the mortgage is discharged at settlement |
| Refinancing to a new lender | Yes — the existing lender’s mortgage is discharged |
| Paying off the loan in full | Yes — the mortgage must be removed from title |
| Partial discharge (selling one of multiple properties) | Yes — partial discharge attracts a fee |
| Switching products within the same lender | Sometimes — depends on lender policy |
Government Discharge Registration Fee — By State
In addition to the lender’s discharge fee, the state or territory land registry charges a government fee to register the discharge:
| State/Territory | Government Discharge Fee (Approximate) |
|---|---|
| NSW | $150–$200 |
| VIC | $100–$200 |
| QLD | $100–$200 |
| WA | $150–$250 |
| SA | $100–$200 |
| TAS | $100–$200 |
| ACT | $100–$200 |
| NT | $100–$200 |
Government fees change — verify with your solicitor or conveyancer before settlement.
Are Discharge Fees Regulated?
Under the National Consumer Credit Protection Act 2009 (NCCP), lenders are required to:
- Disclose all fees, including discharge fees, in the credit contract
- Not charge “unreasonable” exit fees on loans entered after 1 July 2011
- The ban on excessive early exit fees applies to consumer credit contracts
For loans entered after 1 July 2011, lenders cannot charge deferred establishment fees (where a fee is charged based on how quickly you exit the loan). Standard administrative discharge fees are still permitted.
For loans originated before 1 July 2011, older exit fee structures may apply — check your original loan contract.
Fixed Rate Break Cost vs Discharge Fee
The discharge fee is different from the fixed rate break cost (economic cost) that applies when you exit a fixed rate loan before the end of the fixed term.
| Discharge Fee | Fixed Rate Break Cost | |
|---|---|---|
| When charged | Any time you exit the loan | Only when exiting a fixed rate loan early |
| Amount | $150–$400 | Can be $0 to $30,000+ |
| Can be avoided | Cannot be avoided at loan exit | Avoidable — wait until fixed term expires |
| What it compensates | Admin of removing the mortgage | Lender’s cost of re-deploying funds at a lower rate |
→ See Early Repayment Charges on Fixed Rate Loans for full detail.
Total Cost of Refinancing — Including Discharge Fee
When calculating whether refinancing is worthwhile, include:
| Cost | Amount |
|---|---|
| Discharge fee (existing lender) | ~$300 |
| Government discharge registration | ~$150 |
| PEXA/settlement fee (existing loan) | ~$110 |
| New lender application fee | $0–$600 |
| New lender valuation fee | $0–$400 |
| Government mortgage registration (new loan) | ~$150 |
| PEXA/settlement fee (new loan) | ~$110 |
| Total refinancing transaction costs | ~$820–$1,820 |
For refinancing to save money, the interest rate saving must exceed the transaction costs within a reasonable period.
Break-even example: $1,500 total refinancing cost, saving $100/month interest = 15 months to break even.
Are Discharge Fees Negotiable?
In most cases, no — discharge fees are a standard administrative charge. However:
- Competing lenders sometimes offer refinance cashback offers ($2,000–$4,000) that more than cover discharge and establishment costs
- Some lenders reduce or waive discharge fees for long-standing or loyal customers — worth asking
- Mortgage brokers may negotiate on your behalf for fee waivers
Frequently Asked Questions
When is the discharge fee charged? The discharge fee is charged at settlement when you sell or refinance. It is deducted from the net settlement proceeds or paid by your solicitor at settlement.
Is the discharge fee the same as the exit fee? The terms are often used interchangeably, but technically: a discharge fee is the administrative cost of removing the mortgage; an exit fee (deferred establishment fee) was a time-based fee charged for leaving early. Exit fees on post-July 2011 loans are banned.
Can I waive the discharge fee by staying with the same lender? If you are refinancing within the same lender (product switch), the discharge fee may not apply (the mortgage remains in place). Product switching is faster and cheaper than a full refinance.
Related Guides
- Early Repayment Charges on Fixed Rate Loans
- Home Loan Costs and Fees in Australia
- Total Cost of Buying a House
- Costs and Fees Hub
This article provides general information about mortgage discharge fees. Fees vary by lender and change over time. Always confirm fees with your lender before making decisions about refinancing or selling. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.