# discharging a home line vs a traditional mortgage



## rookie (Mar 19, 2010)

Can the knowledgeable people explain what the difference is? RBC folks suckered me into getting the home line even though i did not need the credit nor have i used it since i have had it. now that it is time to renew my mortgage, and that i am sure rbc is not going to entice me with a good rate, i am shopping around and TD official is saying that i would have to incur a legal fee of 500$ to register a fresh security once my homeline is discharged. they might have to re-apprise the property as well... if what i had was a traditional mortgage, they could have simply transferred it over without any of these fees.

i am also talking to cibc and they did not mention any such fees.


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## Cal (Jun 17, 2009)

I don't get the $500 fee for transferring your line of credit. However if you don't need/use it, perhaps you should just close it. Although it is good to have one accessible just in case.

And yes, it is normal for the bank to appraise the property when lending you money.


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## OptsyEagle (Nov 29, 2009)

I suspect that it is for a discharge fee paid to the previous institution (usually about $200) plus all their fees of registering a lien on your property and possibly appraisal fees. The banker is probably just blaming them all on your other bank, when they are causing the majority of it.

Most mortgages and lines of credit will have a discharge fee. The other fees you can negotiate. Usually to zero, but I haven't tried since the credit crisis and I know the banks have been getting a little tougher.

Good luck.


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## Dana (Nov 17, 2009)

All financial institutions charge a discharge fee when you pay off/transfer your mortgage. Hopefully your new lender will pick up this fee for you - tell them you expect it. It is also usual practice for the new lender to order a new appraisal. Hopefully you can negotiate that they pay for this as well. If you are transferring both a mortgage and a line of credit, hopefully they will pick up the fees for both.


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