Discharge Fees - The Basics
It seems someone's always charging a fee for something. Most Canadians are quite "anti-fee" as a result. Even the word fee itself conjures up resentment.
It is therefore no surprise that first-time mortgagors are often disbelieving when they learn they're being stuck with a few hundred dollars in discharge fees.
Discharge fees are what some in our industry call the "goodbye kiss." They're charged whenever you "discharge" a mortgage and leave your lender. Virtually all lenders have them. The Toronto Star list below shows Ontario discharge fees at the major banks for example.
Note that there are actually real costs (governmental, legal, etc.) involved with discharging a mortgage from title. So this fee is not simply a lender cash grab. Although it's "interesting" that some lenders can be $100 apart for this service.
Quick Tip: A few lenders will actually pay your old lender's discharge fee when you switch. (Although, the lenders that do sometimes don't have the best rates.) Ask your mortgage planner for details.
| Lender | Discharge Fee |
| BMO | $200 |
| CIBC | $225 |
| Laurentian Bank | $150 |
| National Bank | $250 |
| RBC | $260 |
| Scotiabank | $270 |
| TD Canada Trust | $200 |
This data provided by Fiscal Agents Financial Information Services, via thestar.com. Please confirm with your lender before relying on the above.
