# Mortgage Discharge Fee



## mrcheap (Apr 4, 2009)

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.


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## CanadianCapitalist (Mar 31, 2009)

1) Yes.
2) No, unfortunately.


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## the-royal-mail (Dec 11, 2009)

LOL what will they think of next.


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## mrcheap (Apr 4, 2009)

CanadianCapitalist said:


> 1) Yes.
> 2) No, unfortunately.


Sad face.

Thanks for the super speedy response!


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## FrugalTrader (Oct 13, 2008)

Besides the $225 fee, congrats on paying off the mortgage!


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## OhGreatGuru (May 24, 2009)

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.


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## CanadianCapitalist (Mar 31, 2009)

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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## mrcheap (Apr 4, 2009)

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).


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## mrcheap (Apr 4, 2009)

CanadianCapitalist said:


> 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 .


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## Cal (Jun 17, 2009)

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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## Mockingbird (Apr 29, 2009)

FYI - the discharge fee varies from province to province and from lender to lender.
Fortunately in BC, this fee is regulated and capped at maximum $75.

MB


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## AMABILE (Apr 3, 2009)

I"m positive that several years ago I discharged 
the mortgage myself to avoid the fees


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## ShawnTH (Apr 9, 2011)

So the better half and I have finally paid off the mortgage. Yay us! 

We have received the notice to pay the discharge fee. The concern about mortgage fraudsters targeting those people that are mortgage free and clear are making me wonder if there might not be a benefit to having the bank still have a claim on the property. Any down side to this idea?


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## GreenAvenue (Dec 28, 2011)

FrugalTrader said:


> Besides the $225 fee, congrats on paying off the mortgage!


I was going to say the same thing! Personally I wouldn't mind paying the $225 knowing I wouldn't have a mortgage after that. 




AMABILE said:


> I"m positive that several years ago I discharged
> the mortgage myself to avoid the fees


I'm curious now... I wasn't aware you can discharge a mortgage yourself?


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## AMABILE (Apr 3, 2009)

You will need a "discharge" from the mortgage holder
(for a nominal fee), then go to the land titles office 
to have it registered and the lien holder's name removed.


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