Independent guide · updated August 2026

Mortgage discharge fees: the three layers of the bill, and the cap almost nobody knows

What the lender charges, what the land registry charges, what the lawyer charges — and the province that caps it all.

In short

The discharge is the document that erases the mortgage from the land registry once the loan is paid off — and it is not free. Three layers: the LENDER's administrative fee, published in each institution's fee schedule — in the range of $200 to $400 at the big banks (August 2026 reading), but CAPPED at $75 in British Columbia by provincial law; the REGISTRATION fee at the land registry, roughly $50 to $80 depending on the province; and, in Quebec as in any sale, the lawyer's or notary's fee for preparing and registering the discharge deed, billed on top. On a sale, the seller pays. Do not confuse the discharge with the prepayment penalty: the penalty can cost thousands.

The bill, layer by layer

LayerOrder of magnitude*Worth knowing
Lender's administrative fee (discharge / release fee)≈ $200 – $400 (big banks)Published in each institution's fee schedule — CAPPED at $75 in BC
Registering the discharge at the land registry≈ $50 – $80 depending on the provinceOfficial registry tariff (Teraview in Ontario, LTSA in BC, SPIN in Alberta, Quebec's Registre foncier)
Lawyer or notary (discharge deed, where applicable)Billed on top, by quoteSystematic in Quebec (notarized deed); on a sale, part of the seller's file

* Market ranges read on 2026-08-12 from the fee schedules published by the major institutions — every lender publishes its own; check yours (the exact figure also appears on your payout statement). Statutory exception: in British Columbia, the credit grantor cannot charge more than $75 to prepare the release (Business Practices and Consumer Protection Act — source: Consumer Protection BC).

Discharge, release, radiation: the same act, and who pays for it

Paying off the loan does not erase the mortgage: until the discharge (release, radiation in Quebec) is registered at the land registry, your title stays encumbered — the kind of surprise that resurfaces years later, at resale, when the lawyer finds a never-registered discharge on a loan long since paid. The trio never changes: the lender produces the document (and bills its fee), the land registry registers it (and bills its tariff), and a lawyer or notary orchestrates when the law or the transaction requires it.

Who pays depends on context. On a sale: the seller — one of the line items in their net proceeds. On a renewal with a new lender: the old lender's discharge fee is one of the few real costs of switching — and the new lender often absorbs it to win your file: get that in writing before signing (our renewal dossier details the manoeuvre). On the final payment: you — and nobody will remind you to do it.

What the discharge is not: the penalty

The discharge fee is an administrative charge, owed even when the loan reaches its normal term. The prepayment penalty is something else entirely: the lender's compensation when you break the loan BEFORE term — three months' interest or the rate differential, often thousands of dollars. On a payout statement the two lines sit side by side and get confused; they share neither cause nor magnitude. The full penalty math is in our mortgage penalty dossier.

One last useful reflex: once the discharge is registered, check the registry — title searches are public in every province. It is the same logic as everywhere on Payotte: take nobody's word for it, not even your bank's; the registry tells the truth.

Frequently asked questions

How much does a mortgage discharge cost?

The discharge is the document that erases the mortgage from the land registry once the loan is paid off — and it is not free. Three layers: the LENDER's administrative fee, published in each institution's fee schedule — in the range of $200 to $400 at the big banks (August 2026 reading), but CAPPED at $75 in British Columbia by provincial law; the REGISTRATION fee at the land registry, roughly $50 to $80 depending on the province; and, in Quebec as in any sale, the lawyer's or notary's fee for preparing and registering the discharge deed, billed on top. On a sale, the seller pays. Do not confuse the discharge with the prepayment penalty: the penalty can cost thousands.

Why is my bank charging a fee when I have paid everything off?

Because producing the discharge is an administrative act distinct from the loan: the lender prepares the document that frees your title, and bills that work per its published fee schedule — in the range of $200 to $400 at the big banks (August 2026 reading). That is legal everywhere… and capped at $75 in British Columbia. The exact amount appears on your payout statement: read it line by line.

Who pays the discharge when I sell my house?

The seller. Discharging their old mortgage is part of their sale file — in Quebec, it is a notarized deed billed on top of the buyer's purchase fees. It is one of the items separating the sale price from the amount actually pocketed, along with the commission and adjustments.

If I switch lenders at renewal, who pays the discharge?

In principle you — it is the old lender's fee. In practice, the new lender often absorbs it (along with transfer fees) to win your file, especially if your balance is attractive. The rule: get the coverage IN WRITING before signing. A "free transfer" that does not name the old lender's discharge fee has promised nothing at all.

How do I verify my mortgage was really discharged?

Search your province's land registry — title searches are public everywhere (Teraview/OnLand in Ontario, LTSA in BC, SPIN in Alberta, Quebec's online Registre foncier). If the paid-off mortgage still shows months after the final payment, demand the discharge from your lender: it is their obligation, and it is your title.

Sources

Related reading — our data dossiers

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