FKINP Do you need a discharge, and how much should you budget?
Build a one-time mortgage-discharge budget from the contract, dated payout statement, professional quote and applicable provincial or territorial registry charges. FCAC says that where lender discharge fees are not regulated, they typically range from no charge to $400; it describes professional fees as typically $400–$2,500.[1] These are conditional guidance ranges, not a nationwide tariff, an all-in total or the borrower’s binding quote. A separate prepayment penalty may apply.[1]
Separate the loan payout from the transaction costs:
- Loan payout: principal, accrued or per-diem interest, any prepayment penalty and other secured amounts.[1][4]
- Transaction costs: the lender’s discharge or assignment fee, lawyer or notary charges where applicable, and land-registry filing costs.[1][2][4]
Paying the loan balance does not remove the lender’s registered interest from title. The discharge process does.[1]
When discharge work is triggered
- Mortgage paid in full: a discharge removes the lender’s registered interest.[1]
- Property sold: the existing charge must be discharged.[1]
- Switch or refinance with another institution: the old lender is removed and the new lender is added on title.[1][3][4]
- Straight renewal with the same lender: the existing charge generally remains, so commercial sources report no discharge fee for the renewal itself.[3][4]
Reconcile the contract and payout statement
Start with the mortgage contract. Federally regulated lenders must disclose their discharge fee in the contract, although that document will not contain every transaction cost.[1]
For each amount, record the line-item name, quoted amount, source document, reason charged, responsible party, payment date and whether it is confirmed or needs clarification.
Separate the payout categories
Mortgage Renewal Hub says a payout statement may include principal, accrued interest to the payout date, per-diem interest, a prepayment penalty, a discharge or assignment charge, and amounts such as NSF fees, inspection fees or property-tax arrears paid by the lender.[4]
A prepayment penalty is not the lender’s administrative discharge fee. Paying before the end of the term may trigger a separate penalty, while a lender switch may involve an assignment fee.[1][3]
Leave the exact penalty, payout-date interest and tax amounts blank until the lender provides a written payout statement. Online calculations may omit administrative or legal costs or use rates that differ from the contract.[3][4]
Add professional and registry costs
List lawyer or notary fees, title searches and land-registration charges separately unless the lender’s documents expressly include them. Cambrian Credit Union, for example, describes discharge costs as preparation, land-title search and land-title discharge components; this is not a nationwide fee schedule.[6]
Total funds required = verified loan payout + lender charges + professional charges + registry charges − any written credit from the incoming lender. FCAC recommends asking whether the new lender will cover discharge costs.[1]
Do not treat third-party tables labelled September or October 2026 as lender quotes. One cited page uses inconsistent review, update and fee-date labels.[3][4]
Clear every debt secured by the charge
A zero mortgage balance may not be enough if the registered charge also secures another account. FCAC says a mortgage-linked home equity line of credit must be paid off and closed before the mortgage can be discharged.[1]
For its collateral mortgages, National Bank says the borrower must notify the lender and pay every debt secured by the mortgage before cancellation.[5]
Ask the lender to confirm in writing:
- each secured account that must be paid and closed;
- the balance required for each account;
- the payout date and whether per-diem interest continues after it; and
- the documents the lender will provide after the secured obligations are cleared.
Even when every balance is zero, the lender’s registered rights remain on title until the discharge process removes them.[1]
Verify the discharge on title
Keep repayment confirmation and evidence that the lender’s registered rights were removed. FCAC distinguishes paying off the debt from completing the discharge and says the required process varies with the lender and provincial or territorial registry.[1]
- Request repayment confirmation: Keep the final payout statement and paid-in-full letter; FCAC notes that many lenders provide confirmation only when requested.[1]
- Identify the discharge instrument: Ask the lender and filing professional which signed release or electronic document applies to this province, title and charge.
- Assign lodgement: Identify who obtains the lender’s authority, checks property and registration details, lodges the instrument and pays each registry or professional charge.
- Check completion evidence: Retain the registry receipt or filed document and obtain an updated title record or equivalent confirmation that the former lender’s charge has been removed.
Confirm the applicable provincial signing, filing and processing requirements with the registry or responsible lawyer/notary. Obtain a written completion target, escalation contact and any statutory deadline that actually applies. A commercial website’s generic 30–60-day statement is not proof of a nationwide legal deadline.
What to confirm before paying
- the lender’s exact discharge or assignment fee;
- the prepayment penalty, calculation method and payout-date interest;
- every debt secured by the registered charge;
- lawyer or notary charges and who will file the discharge;
- the registry form, filing fee, signing rules and processing requirements;
- whether the incoming lender will provide a written credit; and
- which filed document or updated title record will confirm removal.
Retain the mortgage contract, payout statement, proof of payment, repayment confirmation, release or discharge instrument, professional invoice, registry receipt and updated title evidence.[1] Request an explanation for any charge that cannot be traced to the contract, an applicable fee schedule or a written quote.
References
- FCAC: Discharging a mortgage, checked 14 October 2026 (canada.ca)
- Mortgage Discharge: What It Is, Fees You'll Pay (nerdwallet.com)
- Mortgage Discharge Fee in Canada: Complete Cost Guide (lendinghub.ca, 2026)
- Discharge Fees by Lender 2026 — TD $340, Scotia, RBC (mortgagerenewalhub.ca, 2026)
- What is involved in discharging a mortgage? | National Bank (nbc.ca)
- What are mortgage discharge fees? | Cambrian Help (mb.ca)
