Selling

Notify your current lender

Discharging the mortgage

To discharge a mortgage you will need to:

• Contact the bank or lending institution that holds the mortgage to let them know that the mortgage will be discharged.
• Once they know what the settlement date is, they will tell you what the final pay-out figure for the mortgage is (which will include a charge for discharging the mortgage).
• Your mortgage provider will be paid out any outstanding amounts at settlment. Once the bank is paid out the title deeds may be transferred to the new owner.
• A document called a discharge of mortgage is given to your solicitor/conveyancer at settlement, who then lodges it at the Land Titles Office.

How much will it cost to discharge your loan?

Discharging your existing mortgage may be very expensive, so find out what the fees and charges associated with the discharge will be.

What if I’m refinancing to a new lender?

You will still need to follow the process above. However the document called a discharge of mortgage will be given to your new lender at settlement, who then lodges it at the Land Titles Office.

To help you save money you may also want to consider the following tips when dealing with home loan lenders:

• Ask your current lender if they can match the best deal on the market. This way you may be able to avoid the cost of mortgage refinancing.
• Ask if the new lender will waive fees associated with mortgage refinancing to get your business.
• Ask if you qualify for a discount on your home loan (e.g. some banks offer ‘professional packages’). 

What to do when they try to save your business

Before going through with the home loan refinance, speak to your current mortgage provider as they may be able to negotiate with you, and match what the other mortgage provider is offering. So, if they do make some attractive offers to try to keep your business, do your sums and it may be worth staying with your existing lender.