Bluestone Mortgage Discharge Authority: Form and Steps

To lodge a Bluestone discharge authority, complete the official form, obtain every loan party’s signature and email it to discharges@bluestone.com.au. Bluestone’s September 2025 form requires at least 15 business days for a full discharge and 21 for a partial discharge or security substitution. Processing starts when Bluestone receives the fully completed form.

For a refinance, organise the authority alongside the incoming lender’s settlement work. An approved replacement loan and a sent discharge email still need a confirmed settlement booking.

Download Bluestone’s Discharge Form

Download the authority from Bluestone’s official loan discharge form page. The form available as at October 2026 is the four-page September 2025 Borrower Discharge Authority Form. Save that version with the client file so the signed document and its instructions stay together.

Choose the request that matches what will happen to the loan and property.

Request	What changes	Sections to complete
Full discharge for refinancing	Repay the existing loan and release its security	1, 2, 4.1, 4.2 and 5
Full discharge after a sale or cash payout	Repay the loan and release the mortgage	1, 2, 4.1 and 5
Partial discharge	Release a property while another remains as security and the loan stays active	1, 2, 4.1 and 5
Security substitution	Replace the existing security property with another, subject to approval	1, 2, 3, 4.1 and 5

A partial discharge or substitution requires a valuation under the form’s instructions. Bluestone can require a reduction in the loan balance, and valuation costs are additional to discharge costs. Keep that approval work separate from a full refinance payout.

For clients with loans at several lenders, use the lender discharge guides to organise each authority. Bluestone’s lending policy guide covers credit and security assessment questions beyond the discharge paperwork.

Sign by Hand and Complete Every Field

Have every party to the loan sign and date the authority, then scan the completed pages for lodgement. This follows the signature fields in Bluestone’s September 2025 form. Hand signing gives the client a completed paper authority to retain with the emailed copy.

Before sending, work through the form in order.

1. Enter every borrower’s full name, any company or trust name, the contact person and daytime telephone number. Add the mailing address after settlement and the Bluestone loan account number.
2. Identify the account to be reduced for a partial discharge or substitution. List each property to be released using its address in the loan agreement, even if that address has changed.
3. Enter the proposed settlement date. For a substitution, complete section 3 with the new security address and settlement date.
4. Name the acting solicitor or conveyancer in section 4.1 and the incoming lender in section 4.2, with their contact and reference details.
5. Obtain every required signature and date in section 5. If a borrower’s signature has changed since the loan agreement, attach a passport or driver’s licence copy as the form instructs.

A missing signature, wrong loan account or incomplete representative details leaves the request unfinished. Compare the scan with the paper copy before emailing, including every applicable page and attachment.

Bluestone and its settlement agent deal with the authorised representatives named in sections 4.1 and 4.2. A change of acting solicitor, conveyancer or lender requires a new authority form. For broker access and scenario contacts, use the Bluestone broker support guide.

Lodge Within Bluestone’s Lead Time

Send the signed authority to discharges@bluestone.com.au with enough time for processing and settlement coordination. Bluestone’s September 2025 instructions set the following minimums from receipt of the fully completed form.

Request or later action	Time to allow
Full discharge	15 business days
Partial discharge	21 business days
Security substitution	21 business days
Reassessment or a new payout figure	An additional 4 business days
Settlement booking	At least 5 working days before settlement

Count back from the proposed settlement date, excluding weekends and applicable public holidays. In a hypothetical calendar with no public holidays, 15 business days is three working weeks and 21 is four working weeks plus one day. Lodge earlier to leave room for corrections and the separate booking requirement.

Save the sent email, attachment and sending time. Obtain confirmation that Bluestone has received a complete request, then record the processing start date and any missing items. A sent-email receipt alone does not establish that processing has started.

After the required processing time, the authorised representative contacts FMS (First Legal), the settlement agent named in Bluestone’s form, on 1300 360 757 to book settlement. Substitution requests follow the specific contact instructions supplied for that transaction. Allow the booking notice within the overall timetable instead of assuming the processing minimum guarantees the requested date.

If settlement moves, give the revised date to the authorised settlement parties immediately. A new payout figure can add processing time. For the shared roles and sequence, see the mortgage discharge process.

Payout Figure, Direct Debits and Redraw

Bluestone provides the settlement payout figure to the authorised representative at least three business days before settlement under its September 2025 authority. Its FAQs also require at least five business days to prepare a firm figure. The representative must arrange the booking and payout request early enough for both requirements.

The payout is the amount needed for the settlement date, including applicable contract charges. Interest continues while the loan is active and the security release remains incomplete. A statement balance therefore cannot replace the settlement payout figure.

Once Bluestone provides the figure, it suspends scheduled direct debits and places a hold on redraw. The borrower must cancel payments made through salary or direct-credit arrangements themselves. Keep scheduled repayments funded until Bluestone’s suspension takes effect.

A direct debit made within five days of the final figure’s issue date might still be uncleared and excluded from that figure. Bluestone returns surplus funds after a full discharge to the direct-debit account on file. Reconcile those payments against the final loan statement before treating a difference as an unpaid balance.

As at October 2026, Bluestone’s published residential fees list a $500 discharge fee in Australian dollars. The client’s loan agreement determines applicable charges, and legal or government registration costs can add to the settlement total. Fixed-rate break costs can change daily, so use the settlement calculation for the client’s loan.

Confirm the Release

Obtain written evidence for settlement, account closure and mortgage registration separately. Bluestone’s September 2025 form describes discharge as removal of the mortgage from the property’s title. Completion of the funds transfer starts the final reconciliation and registration checks.

1. Obtain the settlement confirmation from the solicitor, conveyancer or incoming lender’s authorised settlement representative. Match it to the agreed date and property.
2. Request Bluestone’s final statement or written closure confirmation for every account repaid in full. Reconcile any remaining balance and surplus refund before closing the broker’s task.
3. Obtain registration confirmation from the party handling the mortgage discharge. Check the title record identifies the intended mortgage as removed and records the incoming mortgage where the transaction is a refinance.

For a partial discharge or substitution, obtain confirmation of the released security and the continuing loan balance instead of expecting full account closure. Record which properties still secure the loan.

Bluestone’s form estimates four to six weeks for Land Titles Office registration after a cash payout. A paper title might not be issued automatically, depending on the state. For that cash-payout route, contact First Legal on 1300 360 757 if registration confirmation or title information remains outstanding.

Keep the discharge task open until the settlement evidence, loan outcome and registered security position match the client’s transaction.