Discharging a mortgage removes the lender’s mortgage from your property’s title, and the discharge authority is the signed instruction that tells the outgoing lender to do it. The form starts the process whenever a loan ends: full repayment, a property sale, refinancing or a guarantor release.
This guide walks through the discharge process step by step, from requesting the form to confirming the title update after settlement, and flags the costs, timing traps and lender differences worth knowing. It is written for Australian mortgage brokers managing discharge timelines on behalf of clients.
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When a Mortgage Gets Discharged
A discharge happens under four common scenarios: the loan is repaid in full, the property is sold, the borrower is refinancing to a new lender, or the security arrangements change, such as releasing a guarantor or substituting collateral. In every case the title must be updated so the register no longer shows the outgoing lender’s interest.
The discharge authority belongs to the property owner, not the incoming broker: it is the owner’s formal instruction to the outgoing lender. On a refinance, the new lender cannot lodge it on the owner’s behalf without that authority in place.
What Goes on the Discharge Authority Form
Lender forms vary slightly, but they all ask for the same core details: borrower and guarantor names as they appear on the loan, loan account numbers and security particulars, plus the reason for discharge with the expected payout or settlement date. Errors or missing pages are the most common cause of rework, because lenders return incomplete authorities rather than fixing them.
Step-by-Step Through the Discharge Process
1. Request and Prepare
Contact the outgoing lender as soon as a sale, refinance or payout is likely, because discharge processing commonly takes weeks rather than days and every downstream date depends on it. Gather loan account details, all borrowers’ signatures (including guarantors where applicable) and the security details before completing the form, so it can be lodged complete the first time.
2. Submit the Authority
Submit the completed authority through the lender’s nominated channel, which may be an online portal, email or post depending on the lender, then record the submission date and confirmation reference. Follow up if nothing has been acknowledged within the lender’s stated processing window.
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3. Coordinate Settlement
The PEXA subscriber, usually the solicitor or conveyancer acting on the transaction, lodges the discharge and coordinates payout figures with the outgoing lender. Clear any outstanding fees or break costs before the booked settlement so funds settle on schedule, then confirm after post-settlement that the mortgage has actually come off the title; a title search through the land registry settles that question definitively.
Costs, Timing and Common Delays
Discharge typically involves three cost layers: the lender’s discharge or release fee, government registration fees to remove the mortgage, and professional fees for the conveyancer or solicitor handling settlement. Fixed loans may also carry break costs if discharged before the fixed term ends, so request a payout figure that itemises everything before committing to dates.
The delays that derail settlements are predictable: unsigned or partially completed authorities, missing guarantor signatures, discharge requests lodged too close to the booked settlement, and payout figures that go stale when rates move. Build buffer into every timeline that depends on a discharge.
Lender Processes Differ: Check Before You Assume
Each lender runs its own discharge workflow, forms, portals and turnaround times, so never assume one lender’s process matches another’s. Digital lenders illustrate the point: Unloan, Commonwealth Bank’s digital home-loan brand, promotes a low-fee model, but its marketing slogans are not a guarantee that every discharge scenario is free, so confirm current discharge terms directly on the lender’s live fee page before quoting them to a client.
For brokers comparing lenders on the refinancing side, weigh discharge handling alongside rate and customer service, because slow outgoing discharges delay incoming settlements regardless of how good the new loan is.
After the Discharge Clears
Once the mortgage comes off the title, owners hold unencumbered title and their credit file updates as the loan closes; checking a credit score report a month later confirms the closure was reported correctly. Freed-up equity and repayment capacity open options such as investment purchases or renovations, and keeping half an eye on interest rates and broader economic indicators helps owners time any next borrowing decision rather than rush one.
Next Step: Lodge Early and Track Every Date
On your next discharge file, submit the authority the moment the transaction is firm, diary the lender’s processing window and confirm the title update with a post-settlement search. That sequence catches nearly every discharge delay while there is still time to fix it.
