How to discharge a home loan

Organising a discharge of a mortgage involves notifying your lender, filling out a discharge form and registering this on the Certificate of Title.

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If you’re looking to discharge a mortgage, there’s a specific process you’ll need to follow. Knowing that process, and the situations in which you’ll have to follow it, can save you both time and money.

What is a discharge of mortgage?

A discharge of mortgage is removing a home loan from the title of your property. When you have a home loan, the bank holds the Certificate of Title on your property until the home loan is repaid. When you’ve paid the full amount off your home loan, you need to go through a process to discharge the mortgage and remove the lender from your title.

Discharging a mortgage is an important process, particularly if you’re looking to sell your house or refinance your home loan. Failing to follow the proper steps to discharge your mortgage can end up causing delays and - potentially - costing you money.

When do you have to discharge a mortgage?

Home loans are a long-term proposition, and when you take one out it’s doubtful you’re already thinking about the logistics of discharging it. However, there are a variety of circumstances that might require you to discharge a home loan, and not all of them fall at the end of the loan term.

When you need to discharge

  • If you’re repaying your home loan
  • If you’re selling your home
  • If you’re refinancing

If you’re repaying your mortgage in full

Once you’ve paid off your entire home loan, you’ll have to go through the formal process discharging the mortgage. This includes if you have a split home loan and are paying off one part of it.

If you’re selling your home

When you’re selling your home, an existing mortgage will be listed on your title as an encumbrance. That means it has to be discharged before any settlement can occur. If you’re selling your home but want to keep your home loan for your next property, you can apply for what’s known as a substitution of security. This removes the mortgage from the title of the property you’re selling, and adds it to the property you’re purchasing.

If you’re refinancing with a different lender

When you refinance, you’re discharging a mortgage one home loan facility in order to open another, or with one lender in order to open a new home loan with a different lender. This will require a formal discharge of mortgage.

Should I keep my mortgage?

There are circumstances in which you could be better off choosing not to discharge your home loan. For instance, if you have a home loan with a redraw facility, you could benefit from keeping the loan facility open in order to access the funds. By contrast, if you discharged your home loan and found you wanted to borrow against your dwelling for another purpose, you’d have to go through the entire home loan process again.

How to I discharge a mortgage?

Discharging a mortgage is a fairly straightforward process:Compare interest only home loans 2

1. Notify your lender

Notify your lender to discuss your plans to discharge your mortgage. Your lender will then ask you to complete a Discharge Authority form. Most lenders either have the form on their site, or have an online portal for requesting the form.

2. Complete and return the Discharge Authority form

Next, complete the form and return it to your lender. If you’re selling your property, ensure you complete the form in a timely manner. It will take the lender at least 10 business days to process your request. You might want to think about completing the form in person at a branch so your lender can help you through the process.

3. Register your discharge and Certificate of Title

If you’ve repaid your home loan, the lender can either register your Discharge of Mortgage at the Land Titles office on your behalf, or they can send you both the Discharge of Mortgage and Certificate of Title to register at the Land Titles office.

Should you decide to register the Discharge of Mortgage yourself, you’ll need to know where to register and what fees are payable in your state or territory. You can find that information here:

What are the costs involved?

The costs involved will often depend on the circumstances under which you’re discharging your home loan. Depending on your situation, you may owe your lender discharge fees. It’s important to look closely at your home loan contract and communicate with your lender about what kinds of fees you could be facing.

If your home loan was a fixed rate and you’re paying it out early, you could owe break fees or penalty interest. For a look at some of the fees involved in breaking a fixed rate home loan, read our guide. Also, registering your Discharge of Mortgage and Certificate of Title can carry different fees depending on the state or territory in which you live. You can find links to the relevant fees for your state or territory in the list above.

Planning to switch mortgages? Compare your options

$
% p.a.
years
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Amount Saved

Nano Variable Home Loans P&IHome≥ 25% Equity Refi Only

Nano Variable Home Loans
1.99%
1.99%
$58,480
Switch to this competitive variable rate with zero fees. Requires a 25% deposit.

Westpac Fixed Option Home Loan Premier Advantage Package P&IHome 2Y Fixed≥ 5% Equity

Westpac Fixed Option Home Loan Premier Advantage Package
1.99%
3.48%
$58,085
$3,000 refinance cashback
Lock in a low fixed rate for 2 years that allows you to make up to $30,000 in extra repayments and buy your home with a 5% deposit. $3,000 cashback for eligible refinancers. Apply by 30 September 2021. Terms and conditions apply.

HSBC Fixed Rate Home Loan Package P&IHome 2Y Fixed≥ 20% Equity

HSBC Fixed Rate Home Loan Package
1.88%
2.86%
$61,045
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Equity

UBank UHomeLoan Fixed
1.79%
2.32%
$63,833
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

Suncorp Home Package Plus Fixed P&IHome 2Y Fixed≥ 20% Equity

Suncorp Home Package Plus Fixed
1.89%
2.85%
$61,168
$3,000 refinance cash bonus
Lock in a low fixed rate for 2 years. Available with a 20% deposit. Eligible new borrowers can get the annual package fee reimbursed for the life of the loan. $3,000 refinance cash bonus for eligible borrowers. Other terms, conditions and eligibility criteria apply.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Equity

loans.com.au Smart Booster Discount Variable Home Loan
1.85%
2.21%
$61,558
Get a low discounted variable rate loan. Requires a 30% deposit. Get your loan processed fast and settle within 30 days.

Well Home Loans Equity Plus P&IHome≥ 40% Equity

Well Home Loans Equity Plus
1.87%
1.90%
$61,179
Borrowers with 40% deposits or equity can get this low variable rate loan. 100% offset account included.

St.George Fixed Rate Advantage Package P&IHome 2Y Fixed≥ 20% Equity

St.George Fixed Rate Advantage Package
1.84%
3.38%
$61,978
$3,000 refinance cashback
Borrowers with 20% deposits or equity can get this competitive fixed rate loan. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 September 2021. Terms and conditions apply). Refinancers Only.

Athena Variable Home Loan P&IHome≥ 40% Equity

Athena Variable Home  Loan
1.99%
1.99%
$58,480
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

Homestar Star Gold P&IHome≥ 40% Equity

Homestar Star Gold
1.79%
1.84%
$62,656
Refinancers and buyers with 40% deposits can get this very competitive variable rate. It even comes with a 100% offset account.

AMP Bank Professional Package Fixed Loan P&IHome 2Y Fixed≥ 20% Equity

AMP Bank Professional Package Fixed Loan
1.84%
2.63%
$62,503
$3,000 refinance cashback
Eligible refinancers can get a $3,000 cashback when borrowing $500K or more. Other terms and conditions apply. Get a low fixed rate package with no application or settlement fee. Available with a 20% deposit.

G&C Mutual Bank Momentum Home Loan P&IHome≥ 40% Equity

G&C Mutual Bank Momentum Home Loan
1.99%
2.01%
$58,480
A variable rate loan for owner-occupiers looking to refinance. This loan has low fees and a 100% offset account.

ME Flexible Home Loan Fixed with Members Package P&IHome 2Y Fixed≥ 20% Equity

ME Flexible Home Loan Fixed with Members Package
1.89%
3.17%
$60,510
$3,000 cashback when refinancing a loan of $250,000 or more. Other conditions apply. Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.

Macquarie Bank Basic Fixed Home Loan P&IHome 3Y Fixed≥ 30% Equity

Macquarie Bank Basic Fixed Home Loan
2.09%
2.17%
$55,771
Get a low interest rate and a mortgage with flexible, basic features. No application or ongoing fees. Requires a 30% deposit. Refinancers can switch with a convenient digital application.

Newcastle Permanent Building Society Premium Plus Package Fixed Rate P&IHome 3Y Fixed≥ 20% Equity

Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.09%
3.58%
$55,376
$2,000 cashback for eligible refinancers borrowing $250,000 or more.

IMB Fixed Rate Home Loan P&IHome 3Y Fixed≥ 5% Equity

IMB Fixed Rate Home Loan
1.97%
2.81%
$57,960
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online. Available with a 10% deposit.

homeloans.com.au Low Rate Home Loan with Offset P&IHome≥ 40% Equity

homeloans.com.au Low Rate Home Loan with Offset
2.14%
2.16%
$54,409
A competitive rate with no application or ongoing fees. This loan is not available for construction.

Australian Unity Health, Wealth and Happiness Package Fixed Home Loan P&IHome 3Y Fixed≥ 30% Equity

Australian Unity Health, Wealth and Happiness Package Fixed Home Loan
2.29%
2.80%
$49,889
Home buyers can lock in a low rate for 3 years. Requires a 30% deposit.

Virgin Money Reward Me Fixed Rate Home Loan P&IHome 2Y Fixed≥ 20% Equity

Virgin Money Reward Me Fixed Rate Home Loan
1.98%
2.66%
$58,152
$3,000 refinance cashback.
Buy your home and lock in a low rate for the first two years. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 30 November 2021 and settle by 28 February 2022.

Well Home Loans Balanced Fixed Home Loan P&IHome 1Y Fixed≥ 10% Equity

Well Home Loans Balanced Fixed Home Loan
1.84%
2.01%
$61,676
Owner occupiers can get a sharp fixed rate for the first year, plus an offset account. Available with a 10% deposit.

UBank UHomeLoan Fixed P&IHome 3Y Fixed≥ 20% Equity

UBank UHomeLoan Fixed
1.85%
2.24%
$62,236
A competitive fixed rate loan with no ongoing fees. Requires a 20% deposit.

HSBC Home Value Loan P&IHome≥ 30% Equity

HSBC Home Value Loan
2.19%
2.20%
$53,041
$3,288 refinance cashback offer
This competitive variable rate loan is available for borrowers with 30% deposits. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Nano Variable Home Loans P&IInvestment≥ 25% Equity Refi Only

Nano Variable Home Loans
2.29%
2.29%
$50,288
Investors can refinance this no-fee variable rate loan. You will need a 25% deposit. Fast online approval.

Australian Unity Health, Wealth and Happiness Package Home Loan P&IHome≥ 30% Equity

Australian Unity Health, Wealth and Happiness Package Home Loan
2.39%
2.82%
$47,116
A flexible, variable rate package loan with a 100% offset account. Requires a 30% deposit.

Homestar Star Classic Owner Occupied Fixed Special P&IHome 2Y Fixed≥ 20% Equity

Homestar Star Classic Owner Occupied Fixed Special
1.79%
2.12%
$62,772
Fix to a low rate for two years. Ongoing fee only applies while the rate is fixed. Requires a 20% deposit.

Westpac Flexi First Option Home Loan P&IHome≥ 5% Equity

Westpac Flexi First Option Home Loan
2.09%
2.52%
$55,771
$3,000 refinance cashback
A flexible and competitive variable rate loan. Available to owner occupiers on principal and interest loans. $3,000 cashback for eligible refinancers. Apply by 30 September 2021. Terms and conditions apply.

St.George Basic Home Loan P&IHome≥ 20% Equity

St.George Basic Home Loan
2.29%
2.31%
$50,150
$3,000 refinance cashback
Get this low-rate variable loan with a 20% deposit and pay $0 application fee. Borrow from $150k (or $250k to be eligible for the cashback offer). Apply by 30 September 2021. Terms and conditions apply. Refinancers Only.

Bank of Melbourne Advantage Package Fixed Home Loan P&IHome 2Y Fixed≥ 20% Equity

Bank of Melbourne Advantage Package Fixed Home Loan
1.84%
3.38%
$61,978
$3,000 refinance cashback
Get a competitive home loan rate for two years. Requires at least a 20% deposit. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 September 2021. Terms and conditions apply). Refinancers Only.

G&C Mutual Bank Fixed Rate Home Loan P&IHome 1Y Fixed≥ 5% Equity

G&C Mutual Bank Fixed Rate Home Loan
1.98%
2.03%
$58,086
Lock in a sharp rate for the first year. Available with a 5% deposit.

Nano Variable Home Loans IOHome≥ 25% Equity Refi Only

Nano Variable Home Loans
2.49%
2.17%
$44,720
An interest-only loan for refinancing owner-occupiers with 25% deposits or equity. This loan has no fees.

Macquarie Bank Basic Home Loan P&IHome≥ 40% Equity

Macquarie Bank Basic Home Loan
2.14%
2.14%
$54,409
Apply for the Macquarie Bank Basic Home Loan - LVR ≤ 60% (Owner Occupier, P&I) and get a low variable interest rate, plus no application and ongoing fees. Requires a 40% deposit.

G&C Mutual Bank Basic Variable Home Loan P&IHome≥ 5% Equity

G&C Mutual Bank Basic Variable Home Loan
2.49%
2.51%
$44,720
A low deposit home loan for owner-occupiers. Available with a 5% deposit.

Well Home Loans Balanced Fixed Home Loan P&IHome 2Y Fixed≥ 10% Equity

Well Home Loans Balanced Fixed Home Loan
1.95%
2.02%
$58,718
A low fixed mortgage with an optional 100% offset account. Not available for construction purposes.

St.George Fixed Rate Advantage Package P&IInvestment 2Y Fixed≥ 20% Equity

St.George Fixed Rate Advantage Package
2.24%
3.89%
$51,135
$3,000 refinance cashback.
Investors can lock in a competitive rate for two years with this package loan. You will need at least a 20% deposit. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 September 2021. Terms and conditions apply). Refinancers Only.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Equity

loans.com.au Smart Booster Discount Variable Home Loan
1.99%
2.47%
$57,789
Home buyers can get a very low discounted variable rate for the first year. Requires a 20% deposit. Add an offset account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days.

Well Home Loans Balanced Variable P&IHome≥ 20% Equity

Well Home Loans Balanced Variable
1.99%
2.02%
$57,636
A very low interest rate for home buyers with 20% deposits saved. Add an offset account for a small fee.

loans.com.au Green Home Loan P&IHome≥ 10% Equity

loans.com.au Green Home Loan
2.08%
2.36%
$55,640
Buying an energy-efficient home to live in? Get a discounted rate and borrow up to 90%.

HSBC Home Value Loan P&IHome≥ 10% Equity

HSBC Home Value Loan
2.54%
2.55%
$43,315
$3,288 refinance cashback offer
A competitive value home loan with no ongoing fee. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Well Home Loans Balanced Fixed Home Loan P&IHome 3Y Fixed≥ 10% Equity

Well Home Loans Balanced Fixed Home Loan
2.14%
2.06%
$53,548
A low 3 year fixed rate for home buyers. Add a 100% offset account with a $10 monthly fee. Not available for construction purposes.

Westpac Fixed Option Home Loan Premier Advantage Package P&IInvestment 2Y Fixed≥ 5% Equity

Westpac Fixed Option Home Loan Premier Advantage Package
2.29%
3.97%
$49,893
$3,000 refinance cashback
A competitive fixed rate loan for investors that allows you to make up to $30,000 in extra repayments. Principal and interest loans only. $3,000 cashback for eligible refinancers. Apply by 30 September 2021. Terms and conditions apply.

Athena Variable Home Loan P&IHome≥ 30% Equity

Athena Variable Home  Loan
2.09%
2.02%
$55,771
A low variable rate for owner occupiers with 30% deposits. No upfront or ongoing fees.

Well Home Loans Balanced Fixed Home Loan P&IInvestment 3Y Fixed≥ 10% Equity

Well Home Loans Balanced Fixed Home Loan
2.34%
2.36%
$48,020
A competitive 3 year investor rate with principal and interest repayments. Optional offset account with a $10 monthly fee. Not available for construction purposes.

Bank of Melbourne Advantage Package Fixed Home Loan P&IInvestment 2Y Fixed≥ 20% Equity

Bank of Melbourne Advantage Package Fixed Home Loan
2.24%
3.91%
$51,135
$3,000 refinance cashback.
Lock in a low rate for two years with this competitive investment package loan. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 September 2021. Terms and conditions apply). Refinancers Only.

UBank UHomeLoan Variable Rate P&IHome≥ 20% Equity

UBank UHomeLoan Variable Rate
2.34%
2.34%
$48,904
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.

HSBC Home Value Loan P&IInvestment≥ 30% Equity

HSBC Home Value Loan
2.44%
2.45%
$46,120
$3,288 refinance cashback offer
This variable rate loan is available for property investors with 30% deposits. This loan has very few fees. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

Athena Variable Home Loan IOHome≥ 30% Equity

Athena Variable Home  Loan
2.84%
2.32%
$34,772
A variable loan with interest-only repayments for owner-occupiers with 30% deposits. This loan has no fees.

Nano Variable Home Loans IOInvestment≥ 25% Equity Refi Only

Nano Variable Home Loans
2.59%
2.40%
$41,904
This variable investment loan has interest-only repayments and is for refinancers only. Fast online approval. Requires a 25% deposit.

IMB Fixed Rate Home Loan P&IHome 1Y Fixed≥ 5% Equity

IMB Fixed Rate Home Loan
2.19%
2.98%
$51,949
Lock in a rate for one year and get the ability to make additional repayments for 12 months without penalty. Face-to-face consultations available for NSW and ACT customers. Available with a 5% deposit.

homeloans.com.au Low Rate Home Loan with Offset IOInvestment≥ 20% Equity

homeloans.com.au Low Rate Home Loan with Offset
2.69%
2.52%
$39,067
A competitive rate with no application or ongoing fee. This loan is not available for construction.

Suncorp Home Package Plus Fixed P&IInvestment 3Y Fixed≥ 20% Equity

Suncorp Home Package Plus Fixed
2.28%
3.15%
$50,565
$3,000 refinance cash bonus
Borrowers with 20% deposits can lock in a low fixed rate loan for three years. Eligible new borrowers can get the annual package fee reimbursed for the life of the loan. $3,000 refinance cash bonus for eligible borrowers. Other terms, conditions and eligibility criteria apply.

Bank of Melbourne Basic Home Loan P&IHome≥ 20% Equity

Bank of Melbourne Basic Home Loan
2.29%
2.31%
$50,150
$3,000 refinance cashback
A competitive variable rate loan. Refinancers borrowing $250,000 or more can get a $3,000 cashback (Apply by 30 September 2021. Terms and conditions apply). Refinancers Only.

Athena Variable Home Loan IOInvestment≥ 30% Equity

Athena Variable Home  Loan
2.69%
2.52%
$39,067
Investors with 30% deposits can get this fee-free variable rate loan. This loan has interest-only repayments.

homeloans.com.au Low Rate Home Loan with Offset P&IHome≥ 20% Equity

homeloans.com.au Low Rate Home Loan with Offset
2.24%
2.26%
$51,667
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments. This loan is not available for construction.

Suncorp Back to Basics Home Loan P&IHome≥ 20% Equity

Suncorp Back to Basics Home Loan
2.44%
2.45%
$46,120
A competitive variable interest rate loan with low fees. The establishment fee is waived if you borrow $150,000 or more.

Newcastle Permanent Building Society Premium Plus Package Fixed Rate P&IHome 1Y Fixed≥ 5% Equity

Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
2.19%
3.83%
$52,646
$2,000 refinance cashback
Enjoy a competitive rate with no application fee for this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.

homeloans.com.au Low Rate Home Loan with Offset IOHome≥ 20% Equity

homeloans.com.au Low Rate Home Loan with Offset
2.54%
2.37%
$43,315
Owner-occupiers with 20% deposits can get this variable interest-only loan.

IMB Budget Home Loan P&IHome≥ 20% Equity

IMB Budget Home Loan
2.48%
2.54%
$43,867
A competitive variable rate for borrowers with 20% deposits saved. Available for NSW and ACT borrowers only.