# Mortgage discharge fee



## pooky77 (May 8, 2012)

Hi,
Just wondering...I spoke to my bank today about our mortgage discharge fee. Our 5 year term is up in August and they were calling to offer us a rate today as it is less then 120 days till the end of the term. I have however, been looking around for the best rate and told them this. When I asked what the discharge fee would be at the end of the term she stated it would be around $3000!!! Does this not seem excessive?? I was expecting somewhere around the $250- $300 mark!! We live in New Brunswick and the bank is CIBC. Does anyone know for sure if this is even possible? Thanks!


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## LondonHomes (Dec 29, 2010)

That rate does seem excessive.

If your planning to move to a new bank, ask them to pick up the discharge charge fee. That is what is normally done around here and as long as you ask they usually have no problem paying it for you.


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## Cal (Jun 17, 2009)

I think the discharge fee for TD is $265. Perhaps the rep was confused and quoted you for the full fee as if you were selling your home and breaking the mortgage.


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## Eclectic12 (Oct 20, 2010)

pooky77 said:


> Hi,
> Just wondering...I spoke to my bank today about our mortgage discharge fee.
> 
> Our 5 year term is up in August and they were calling to offer us a rate today as it is less then 120 days till the end of the term. I have however, been looking around for the best rate and told them this. When I asked what the discharge fee would be at the end of the term she stated it would be around $3000!!!
> ...


Yes, it does seem excessive. The link below suggests it should be around $225.
http://www.fiscalagents.com/rates/mtg_disx_sort.shtml

With the amount quoted, it may be that the person you were talking to thought you wanted to discharge the mortgage now instead of in August (i.e. fee plus lost interest). At least that's the only reason I can think of that it would be that high!

If there is someone in your branch you are comfortable dealing with, I'd ask them when you are in the bank next time. 


Cheers


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## Just a Guy (Mar 27, 2012)

The fees can vary a lot depending on interest rates and remaining principal. I think they're including the early repayment penalty in the "discharge" fee. One thing you can do to reduce it is to max out your yearly pay down. Usually you're allowed to may a once a year pay down on your mortgage without penalty (usually 10-25% depending on the mortgage). One way to do this is to get your new bank to issue two checks, one for the pay down, the second for the remainder of the principal.

The banks are supposed to factor this in now, there was a class action lawsuit a few years back that the banks lost, but I've rarely seen them do it.


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