Discharge of Mortgage in Australia — What It Is and How It Works (2026)
When you repay your home loan in full — whether through regular repayments over the loan term, an early lump-sum payoff, or sale of the property — the mortgage must be formally discharged. Here is how the process works in Australia.
What Is a Mortgage Discharge?
A mortgage discharge is the legal process of removing a mortgage from the title of a property once the secured debt has been repaid in full. Until the mortgage is formally discharged, the lender’s interest remains registered on the property title at the state land registry.
After discharge:
- The lender’s caveat/charge is removed from the title
- You hold the property free of the mortgage security
- You hold (or your lender or conveyancer will provide) the Certificate of Title, or in the case of electronic titles, the title record reflects no mortgage
When Does a Discharge Occur?
| Trigger | Notes |
|---|---|
| Loan fully repaid (end of term) | Automatic at final repayment — discharge still needs formal registration |
| Selling the property | Proceeds pay out the loan at settlement; discharge handled by your conveyancer |
| Refinancing to a new lender | New lender’s funds pay out the old loan; old mortgage discharged; new mortgage registered |
| Voluntary full payoff | You make a lump-sum payment to clear the remaining balance |
| Mortgagee-in-possession sale | After a forced sale, proceeds applied; discharge registered |
The Discharge Process — Step by Step
Request discharge authority — contact your lender and complete a Discharge Authority form (required in all states; some lenders have online forms)
Settlement date — lenders must be given adequate notice (typically 10–20 business days); advise well in advance of settlement if selling or refinancing
Final payout figure — the lender provides a final payout amount including outstanding principal, accrued interest to settlement date, and any break fees (for fixed-rate loans)
Payment — at settlement, the loan is repaid in full; for property sales, your conveyancer handles this from sale proceeds; for refinancing, the new lender’s settlement team handles it
Discharge registration — once repayment is confirmed, the lender registers the discharge with the state land registry (or provides discharge documents to your conveyancer for registration)
Title updated — the mortgage is removed from the title register; this typically takes days to a few weeks after settlement
Costs of Discharging a Mortgage
| Cost | Typical range |
|---|---|
| Discharge fee (lender) | $150–$400 (most major lenders) |
| Land registry fee (discharge registration) | $50–$200 (varies by state) |
| Break fee (fixed rate loan) | Can be $0 to several thousand dollars — calculated by lender formula |
| Conveyancing (if selling/refinancing) | $800–$2,000+ — includes discharge coordination |
Break fees on fixed-rate loans: If you discharge a fixed-rate loan before the fixed period ends, the lender typically charges a break cost calculated based on the difference between your fixed rate and current wholesale rates for the remaining term. This can be substantial — always request a break cost estimate before proceeding.
Electronic Conveyancing and Discharge (PEXA)
Most Australian property transactions now use the PEXA (Property Exchange Australia) platform for electronic lodgment and settlement. Under PEXA:
- Discharge and transfer documents are prepared and lodged electronically
- Settlement occurs digitally, with funds transferred and title updated on the same day
- Paper Certificate of Title is no longer issued for electronic transactions — the Torrens title register is the authoritative record
After Discharge — What Do You Receive?
After mortgage discharge, the key outcome is the removal of the mortgage from the title register. Depending on your state and circumstances:
- Electronic title (most common now): No physical document — the title register record is updated. You can obtain a title search to confirm the discharge
- Old paper Certificate of Title: If your title was a paper certificate issued before electronic conveyancing, it will be updated/cancelled
Keep records of your discharge — a title search certificate or confirmation from your conveyancer.
Frequently Asked Questions
Can I discharge my mortgage at any time?
For variable rate loans — yes, with the lender’s notice requirement. For fixed-rate loans — yes, but break costs may apply. Review your loan contract for exit clauses.
How long does a mortgage discharge take?
For property sales and refinances, discharge is handled at settlement — typically same-day for PEXA transactions. For voluntary payouts, the discharge registration after repayment takes approximately 5–15 business days after the lender confirms receipt.
Will the lender notify me when the discharge is complete?
Lenders vary — some notify automatically, some don’t. You can check via a title search (available from the state land registry for a small fee, or through your conveyancer) to confirm the mortgage has been removed.
Related Guides
- Refinancing Your Home Loan in Australia
- What Happens If House Prices Fall Significantly?
- Mortgage Hardship Hub
- Mortgages Section Hub
This article provides general information about mortgage discharge in Australia. Discharge processes and fees vary by lender and state. For property transactions, work with a licensed conveyancer or solicitor. Find mortgage help through MoneySmart.