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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.

good-bye-kissDischarge 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 Please confirm with your lender before relying on the above.