Mortgage Discharge Fee
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Thread: Mortgage Discharge Fee

  1. #1
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    Mortgage Discharge Fee

    Hi all,

    I'm paying off a mortgage at the end of the year and found out today PC Financial is charging me a $225 "mortgage discharge fee".

    1) Is this standard?
    2) Is there any way to avoid paying it?

    Thanks in advance for any advice!

    EDIT: To clarify, I'm paying off my mortgage at the end of the term (instead of renewing). I'm not breaking it.

    Last edited by mrcheap; 2011-11-16 at 10:12 AM. Reason: Extra information

  2. #2
    Administrator CanadianCapitalist's Avatar
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    1) Yes.
    2) No, unfortunately.
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  3. #3
    Senior Member the-royal-mail's Avatar
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    LOL what will they think of next.

  4. #4
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    Quote Originally Posted by CanadianCapitalist View Post
    1) Yes.
    2) No, unfortunately.
    Sad face.

    Thanks for the super speedy response!

  5. #5
    Administrator FrugalTrader's Avatar
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    Besides the $225 fee, congrats on paying off the mortgage!
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  6. #6
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    Theoretically you are paying them for administrative costs for getting a Discharge of Mortgage from the Land Titles Office. Whether the amount charged is a true reflection of their costs is impossible to tell - but $225 is certainly in the normal range. It cost me $125 in 1997.

    As the owner, you want that discharge, so that you have proof of clear title. So it is worth having.

    In an ideal world the mortgage holder would be obligated to provide this at no extra cost, but the world is not ideal. I'm sure they would argue that they have no control over what future legal fees & Land Titles Office fees will be, so they can't absorb it in the cost of the mortgage.

  7. #7
    Administrator CanadianCapitalist's Avatar
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    Also note that if you have a secured line of credit and you wish to close it, you may be charged a mortgage discharge fee of a similar magnitude.
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  8. #8
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    TRM: Yeah :-(

    FT: Thanks! I'm actually just moving it onto a couple LOCs so I can sell the condo in the new year, so it's not a massive accomplishment.

    OGG: Fair point. I'd love if lenders would absorb this expense and cover it with their rate so it was easier to compare mortgages, but I guess that's asking too much. I got them to drop all the origination fees, but no mention was made of this (although I'm sure it's buried in my agreement somewhere).

  9. #9
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    Quote Originally Posted by CanadianCapitalist View Post
    Also note that if you have a secured line of credit and you wish to close it, you may be charged a mortgage discharge fee of a similar magnitude.
    Thankfully that doesn't apply to me, but good to know! I never got a secured LOC because I couldn't get them to waive the setup fee :-P.

  10. #10
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    Yet another reason to buy the bank stocks.

    Even when you pay them, they squeeze just a little more out of you.


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