What is a mortgage discharge fees in Australia?

What is a Mortgage Discharge Fee? 

A mortgage discharge fee is a fee charged by the lender when you pay off your mortgage loan. This fee covers the costs of processing and closing out the loan, including any administrative costs associated with it. It's also known as an exit or termination fee.

What is the Purpose of a Mortgage Discharge Fee? 

The purpose of a mortgage discharge fee is to cover the costs associated with closing out your loan, such as filing paperwork and other administrative tasks. It's important to note that this isn't an additional cost; rather, it's part of what you already owe on your mortgage loan.

Who Pays the Mortgage Discharge Fee? 

Generally speaking, borrowers are responsible for paying their own mortgage discharge fees. However, in some cases lenders may waive or reduce these fees if they feel that doing so would benefit them financially in some way (such as if they're trying to attract more customers).

How Much Does a Mortgage Discharge Fee Cost? 

The amount of money charged for a mortgage discharge fee can vary depending on several factors such as how much money was borrowed and how long ago it was taken out. On average, however, most lenders charge between $200-$400 for this service.

When is a Mortgage Discharge Fee Required? 

A mortgage discharge fee must be paid when you close out your loan by either selling or refinancing your home or paying off all remaining debt owed on it in full (including any interest accrued). In some cases where there has been fraud involved with obtaining the original loan agreement then additional charges may apply too.

How to Avoid Paying a Mortgage Discharge Fee? 

One way to avoid having to pay this type of charge is by making sure that you keep up with all payments throughout the life of your loan - even if they’re just small amounts each month - so that no arrears accumulate which could result in extra charges being added at closure time later down line . Additionally , shop around different banks and lenders before taking out any new loans – sometimes they offer better deals than others which could save you from having to pay unnecessary fees like this one .


A mortgage discharge fee can be expensive but understanding what it covers and why its necessary can help make sure that everything goes smoothly during closure time . Knowing who pays for it , how much its worth , when its required and ways to avoid having to pay one altogether will ensure that no unexpected surprises arise along the way .

About the author 

Harold Simmons

Harold is the founder and creator of the Asset Owners Discussion Project. He creates quality resources so investors can get access to information they wouldn't normally be able to access. He has been investing in real estate for almost three decades and is particularly experienced with mortgages and refinancing.

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