Home loan discharge fee: costs and timing

What does a discharge fee cover?

A home loan discharge fee is the charge for closing a home loan and releasing the lender's mortgage over the property. Two separate charges can apply. The lender charges its own fee: HSBC lists a $395 discharge fee (schedule dated 28 February 2025) and ME lists a $350 Security Release Fee (guide dated February 2026). The state or territory land registry then charges a government fee to register the discharge on the title: as at 1 July 2026, $182.73 including GST in New South Wales, $225.10 in Western Australia and $184.00 in the ACT. A discharge fee is not an exit fee, and the 2011 ban on exit fees expressly excludes it.

The National Consumer Credit Protection Regulations 2010 define a discharge fee as "a credit fee or charge that only reimburses the credit provider for the reasonable administrative cost of terminating the credit contract." That cost must not exceed a reasonable estimate of the lender's average administrative cost of terminating that class of contract. The 2011 Explanatory Statement gives examples: calculating the payout figure, processing the termination, discharging a related mortgage, and third party costs that arise because of the termination. ASIC notes that standard discharge fees and charges "can include legal fees and land registry costs."

Discharge fee, exit fee and break fee: three different charges

The Explanatory Statement to the 2011 amending regulations records: "On 12 December 2010, the Government announced that it would ban exit fees for new home loans from 1 July 2011." The Government's stated reason, published by Treasury, was that exit fees "can be so high that they completely wipe out the savings from switching to a cheaper mortgage with another lender."

Regulation 79A bans a fee paid on or in relation to ending a credit contract entered into on or after 1 July 2011, where any of the credit is secured over residential property. It carves out discharge fees, break fees, and fees incurred when a contract ends before any credit is provided. ASIC describes standard discharge fees as fees "paid regardless of whether a loan is terminated early".

What about home loans taken out before 1 July 2011?

The ban covers contracts entered into on or after 1 July 2011. ASIC's Regulatory Guide 220 (November 2023), on unconscionable early termination fees and unfair contract terms, is relevant to older residential loans with early termination fees, and to early termination fees the regulations still permit, such as break fees.

What do lenders publish as their discharge fee?

Lenders use different names for this fee: HSBC lists a $395 discharge fee (28 February 2025), ME a $350 Security Release Fee (February 2026) and Newcastle Permanent a Discharge Administration Fee with no amount stated (1 September 2026). Each figure is from the lender's own document, as published on the date shown, and is not a ranking or a market survey.

Newcastle Permanent says the fee applies when a loan is paid off in full and the lender registers the discharge, and that any costs it incurs for that are charged to the borrower. Macquarie's customer help page notes that other parties' charges, such as a discharge registration fee or settlement costs, may also fall to the borrower.

What does each state and territory charge to register a discharge?

The government fee comes from the land registry in the property's state or territory. As at 1 July 2026 it is $182.73 including GST in New South Wales, $225.10 in Western Australia and $184.00 in the ACT. ME says these government and title registration fees can vary between states and are collected through the payout figure when the loan settles.

The Northern Territory sets the fee in revenue units, not dollars; we could not verify the dollar value of a revenue unit, so we have not converted it.

Why does a refinance involve two registry fees?

A refinance usually involves two registry dealings: discharging the old mortgage and registering the new one. In New South Wales and Western Australia both dealings cost the same as at 1 July 2026. Illustrative arithmetic only: two New South Wales fees at $182.73 including GST total $365.46, and two Western Australian fees at $225.10 total $450.20. Our refinance costs guide covers the new lender's fees and the break even point.

How long does a discharge take?

Each lender states its own timeframe (pages accessed 25 October 2026). ME says a discharge can take up to 21 business days once it has a properly completed Discharge Authority Form. HSBC says it could take 21 business days or more after it receives the signed request. Macquarie's customer help page puts the usual time to finalise a discharge at up to 21 days.

ME and Macquarie give an upper figure; HSBC gives a minimum. ME's clock starts when it receives the properly completed form, and HSBC's when it receives the signed request.

What details help before asking for a payout figure?

Four things are worth confirming before asking for a payout figure: the lender's discharge form, whether any part of the loan is fixed, how many mortgages are on the title, and whether the switch stays with the same lender.

• The lender's discharge form. ME times a discharge from receipt of a properly completed Discharge Authority Form, and HSBC from receipt of the signed request.
• Whether any part of the loan is fixed. ME says a break cost may be payable if the loan or a loan portion is on a fixed rate, and HSBC says paying off a fixed rate loan may incur break costs.
• How many mortgages are on the title. In New South Wales, an electronically lodged document removing two mortgages attracts the fee twice; Western Australia charges for each interest.
• Whether the switch stays with the same lender. Moneysmart lists a switching fee for refinancing with the same lender, separately from the discharge fee.

Is a discharge fee the same as an exit fee?

No. A discharge fee reimburses the lender's reasonable administrative cost of ending the loan contract. An exit fee, also called an early termination fee, is payable because the loan is repaid early. Regulation 79A bans exit fees on home loans entered into on or after 1 July 2011, but it expressly carves out discharge fees and break fees.

How much does it cost to discharge a home loan?

Two separate charges can apply. HSBC lists a $395 discharge fee (dated 28 February 2025) and ME a $350 Security Release Fee (February 2026). The registry fee is $182.73 including GST in New South Wales, $225.10 in Western Australia and $184.00 in the ACT, as at 1 July 2026; the Northern Territory sets 115 revenue units plus a $10 levy. In Victoria, Queensland, South Australia and Tasmania it is charged by the state land registry; we have not reproduced a figure.

Will I pay break costs when I discharge a home loan?

Possibly, if any part of the loan is fixed. A break fee is separate from the discharge fee: under the regulations it relates only to early repayment of the fixed portion and the lender's loss from interest rate differences. ME says a break cost may be payable if the loan or a loan portion is on a fixed rate, and HSBC says paying off a fixed rate loan may incur break costs.