Discharge of Mortgage: Forms, Fees and Timing

A discharge of mortgage removes a lender’s registered mortgage from a property’s title. To arrange it, identify the security being released, lodge the lender’s discharge authority and coordinate the payout with the person handling settlement.

Repaying the loan and removing the registered mortgage are separate steps. For a sale or refinance, the outgoing lender needs the correct instructions before settlement, when funds repay the debt and the release documents are lodged.

Choose Full or Partial Discharge

Choose a full discharge when the relevant debt is being paid out and all security for that arrangement is being released. A partial discharge releases specified security while the lender retains security over another property or asset.

You can sell a house with a mortgage. At settlement, the agreed sale proceeds pay the outgoing lender’s required payout, and the lender releases its mortgage over the sold property. If the proceeds fall short, the borrower needs an agreed way to cover the shortfall before the lender will release it.

Before lodging an authority, list every secured facility and property. Identify which loan accounts will close, which properties will be released and which facilities or guarantees will remain. Separate loan account numbers don’t prove that each property secures only one loan.

A Two-Property Partial Release

Consider this hypothetical example. A borrower owes $900,000 across two loan accounts, and both properties secure the overall debt. Property A sells for $600,000, while the lender values retained Property B at $500,000.

The borrower expects to repay the $400,000 account they associate with Property A and keep the remaining $500,000 loan. That would leave debt equal to 100% of Property B’s value. The lender must assess the proposed retained security and decide how much sale money it requires.

Suppose the lender approves a retained debt limit of $350,000 for this example. The release then needs a $550,000 debt reduction, calculated as $900,000 minus $350,000. The borrower can’t assume that paying $400,000 releases Property A or that the remaining sale money is theirs to withdraw.

These figures are illustrative, with sale costs and accrued interest excluded. The actual release depends on the lender’s valuation, secured obligations and approval of the remaining arrangement. Westpac’s paid-off-loan guide, as at October 2026, says a valuation fee can apply where multiple securities relate to the request.

Lodge the Correct Authority

Lodge the outgoing lender’s current discharge authority through the channel that lender accepts. A discharge authority gives the lender the borrower’s release or variation instructions. The land-registry discharge document removes the mortgage from title after lodgement and registration.

Complete the authority in this order.

1. Open the lender’s official discharge page. Select the route for the actual loan product and borrowing entity.
2. Retrieve the current form from that page. A mortgage discharge form PDF needs completion and submission, while an online authority collects the instructions through the lender’s website.
3. Match the authority to the loan and security records. Include the property being released, affected facilities, discharge reason and expected settlement date.
4. Confirm the required signatories. Use the form’s borrower, owner and guarantor instructions, including company or authorised-representative requirements where applicable.
5. Submit through the lender’s stated channel. Retain the completed authority and submission evidence, then record its acknowledgement and reference number.

Use the official page each time instead of reusing an old attachment or hosting a copy. Record the form’s version or retrieval date, the signatories and the submission date. A broker’s authority to discuss a loan doesn’t automatically replace the signatures required for its discharge.

As at October 2026, National Australia Bank (NAB) provides an online personal-banking discharge route. Its checklist requires relevant borrowers, property details and loan accounts, plus authorised representatives and account instructions. Australia and New Zealand Banking Group (ANZ) publishes a Discharge and Variation Authority PDF through its official closure guidance.

Before settlement coordination, obtain the lender’s confirmation that it has a complete authority for the intended properties and facilities. An automated receipt proves submission only.

Check Fees and Payout Timing

Build the settlement estimate from the lender’s dated payout and separately identified charges. There is no single Australian mortgage discharge fee or processing time that applies to every loan.

Amount	What it covers	Who confirms it
Loan principal	Debt remaining before final adjustments	Outgoing lender
Accrued interest	Interest payable up to the payout date	Outgoing lender
Discharge or production fee	The lender’s specified release service	Outgoing lender, using the applicable contract and fee schedule
Fixed-rate break cost	A charge for early repayment under the fixed loan’s terms	Outgoing lender, for the proposed repayment date
Mortgage-registration charge	Recording the release at the relevant land registry	Settlement practitioner or lodging lender
Professional and electronic-settlement charges	Conveyancing work and the applicable platform transaction	Settlement practitioner and the party charging the fee

ANZ’s current discharge authority, checked in October 2026, describes its discharge/production fee as covering preparation and production of security documents or a full or partial release request. That fee is separate from ANZ’s settlement fee. Use the applicable loan terms to establish which fees apply to the client’s request.

For a named fee example, Commonwealth Bank of Australia’s (CommBank) fee schedule effective October 2026 lists a $350 Settlement Fee (Discharge). It applies when the security is sold in part or whole, or the loan is refinanced elsewhere. The schedule excludes existing No Fee Variable Rate Home Loans and No Fee Variable Rate Investment Home Loans from that fee section.

The $350 is a bank fee in Australian dollars, not the client’s total discharge cost. Interest, any applicable fixed-rate charges and registration or professional charges need their own lines. For the fixed-loan component, use the guide to home loan break costs.

Allow the Outgoing Lender’s Lead Time

Work back from the agreed settlement date using the outgoing lender’s processing requirement. As at October 2026, NAB’s discharge checklist requires at least 10 business days to process the form. That is NAB’s requirement, not a national deadline.

ANZ’s closure guidance, as at October 2026, aims to process a complete request within 10 business days. Valuations, reassessments or further documents can extend that period. ANZ says it sends a confirmation email with a reference number the next business day after submission.

Track acknowledgement, settlement booking and payout confirmation as separate statuses. An acknowledged discharge request doesn’t mean the settlement is booked. A booked settlement doesn’t make an earlier indicative balance the final payout.

Ask for the figure that applies to the actual repayment date and record its validity. If settlement moves, arrange a refreshed figure or the lender’s confirmed adjustment before funds are finalised. Daily interest and fixed-rate repayment charges can change the amount needed.

ANZ’s standalone loan-closure payout guidance, as at October 2026, requires payment on the day it supplies that figure. It also excludes ANZ and government discharge fees. For a sale or refinance, use the settlement payout supplied for that transaction and reconcile its inclusions with the settlement practitioner.

Confirm Completion

Confirm both the lender’s debt position and the registered release before closing the discharge task. The broker coordinates follow-up, the outgoing lender controls its payout and release, and the solicitor or conveyancer handles the client’s settlement work.

Checkpoint	Responsible party	Evidence to retain
Complete authority received	Broker follows up with outgoing lender	Accepted authority reference and any missing-item list
Partial release approved	Outgoing lender	Retained facilities, required debt reduction and release conditions
Settlement ready	Settlement practitioner and participating lenders	Agreed date, documents ready and confirmed funds
Payout applied	Outgoing lender	Final account position or confirmation of the remaining debt
Discharge registered	Lender or practitioner handling lodgement	Registration confirmation and updated title evidence

A zero loan balance doesn’t automatically remove the mortgage. ANZ makes that distinction explicitly in its closure guidance, as at October 2026. After a loan is paid off outside a sale, the borrower still needs the lender’s release process.

For a refinance, keep the outgoing discharge separate from the incoming lender’s approval and funding conditions. Use the home loan settlement guide for the incoming loan’s readiness checks.

Escalate a Delayed Discharge

When a discharge is late, identify the blocked step before asking for urgent handling. Use the following checklist for the actual transaction.

• If the authority is missing, check submission evidence against the lender’s accepted channel and resend the complete request if required.
• If a signature is missing, obtain the required signature and have the lender confirm acceptance of the corrected authority.
• If a partial release is awaiting assessment, identify the outstanding valuation or retained-security decision and its assessor.
• If the payout is late or out of date, have the settlement practitioner obtain the figure for the agreed payment date.
• If settlement is complete but registration remains unresolved, ask the lodging party for the dealing reference, registration status and any requisition requiring correction.

A useful escalation names the lender’s reference, property and affected loan accounts. State the settlement date, the precise unresolved item and the person responsible for supplying it. Request a written response that identifies the next action and expected completion time.

For example, a hypothetical broker escalation can read as follows.

Settlement is scheduled for 15 October. The lender has acknowledged the authority, but one owner’s signature remains outstanding. The owner will provide it today. Confirm acceptance and advise whether the discharge can meet settlement.

Once funds have moved, the party handling lodgement must confirm registration completion. Keep that task open until the released mortgage is removed from the relevant title.

Select the Lender’s Discharge Route

Select the guide for the outgoing lender named on the client’s loan and security records. The correct route depends on the lender and loan product, including whether the account is personal or business lending.

Use the dedicated form guide for that lender’s current fields and accepted submission channel. This shared process applies across lenders, while the lender-specific guide supplies the instructions for that authority.

For example, use the NAB mortgage discharge guide for NAB’s route or the ANZ mortgage discharge guide for ANZ’s authority. Borrowers with those lenders must use the lender’s current form instructions, as at October 2026. Where the lender is different, start from its official discharge page and confirm the product before submitting.

Registration, PEXA and Professional Charges

Record registration and professional charges separately from both the loan payout and the lender’s discharge fee. Property Exchange Australia (PEXA) is an electronic conveyancing platform. Its transaction fee is separate from the land-registry charge and the practitioner’s professional fee.

The practitioner or lodging lender must identify the jurisdiction, number of mortgages and applicable transaction before quoting the registration charge. For a partial discharge, the quote must match the security actually released. The broker can reconcile the estimate, but the participant handling lodgement verifies the charge and registration result.

For a Western Australian example, Landgate’s fee schedule effective 1 July 2026 lists $225.10 per mortgage for discharge. The registration charge is in Australian dollars and exempt from goods and services tax (GST). Lender and professional charges are additional.

In Victoria, use Land Use Victoria’s fees and discharge guidance. Its current guidance says individuals can lodge a discharge only where the mortgagee is a non-bank lender. All other discharges must be lodged by a lawyer or conveyancer.

For New South Wales, the Registrar General’s electronic-conveyancing guidance explains that paper certificates of title are no longer issued. An Information Notice confirms registered dealings and their registration dates. Paying off a mortgage doesn’t produce a new paper title deed.

Use PEXA’s current pricing schedule for the actual jurisdiction and transaction. Its schedule distinguishes standalone discharge from discharge with financial settlement, and single-title from multiple-title transactions. The settlement practitioner’s quote must show which charge is passed to the client and whether it already appears elsewhere in the funds estimate.

An electronic workspace can exist before settlement or registration is complete. Ask the lender or practitioner handling lodgement for the registered dealing confirmation and title evidence.

For a full discharge, confirm removal of the specified outgoing mortgage. For a partial discharge, verify its removal from the released title and the agreed security remaining.