Every home loan refinance involves a document most borrowers never see: the discharge form. This guide explains what it is, who deals with it, what it typically costs, and where to find bank-specific detail if your lender is one we have covered separately.
This guide is general information from Kookaburra Finance. Readers should confirm current forms, fees and processing times directly with their bank before acting, as requirements and costs vary by lender and by state.
What is a mortgage discharge form?
A mortgage discharge form, also called a discharge authority or discharge request, is a formal instruction to your existing lender to remove its mortgage from your property title once the loan secured against it is paid out. Every mortgage registered on a title has to be released before a new one can take its place, and the discharge form is the legal mechanism that makes that happen.
It is separate from your new loan application. Your new lender is not simply taking over an existing mortgage, it is registering a brand new one, which means your old lender's mortgage has to be formally discharged first, or as part of the same settlement process, before the new one can be registered in its place.
Who lodges the discharge form?
In theory, you can request and lodge a discharge form yourself. In practice, almost nobody does this when refinancing through a broker. Once you accept an offer from a new lender, your broker typically prepares the discharge request as part of the overall refinance file and lodges it with your existing bank, at no cost to you, timed to align with your new loan's approval and settlement date.
This matters because discharge forms are a common source of delay. A form with an incorrect account number, a missing signature from a co-borrower, or mismatched property details can hold up settlement by days or weeks. A broker who has lodged hundreds of these forms across different banks knows what each lender needs and chases it up before it becomes a problem, rather than after.
What does a discharge cost?
Costs are broadly similar across the major banks, though it is worth confirming the current figures with your own lender since they do change. As a general guide:
| Cost | Typical range | |---|---| | Discharge fee (lender admin) | Around $350 to $400 | | Government discharge and registration fees | A few hundred dollars, varies by state | | Fixed-rate break cost | Variable, and only applies if you are still inside a fixed-rate term |
If you are on a fixed rate, ask your current lender for a specific payout figure rather than relying on general estimates, since break costs depend heavily on how far into the fixed term you are and how interest rates have moved since you locked in. Some new lenders offer refinance cashbacks that can help offset these costs. Compare current offers on our home loan rates page.
How long does a discharge take?
Across most banks, discharge and settlement processing typically takes two to four weeks from when the request is lodged, though this can vary depending on the lender and how complete the paperwork is. Straightforward files with all signatures in place and no property complications tend to move faster, while jointly owned properties, loans secured against multiple properties, or estate matters can add time.
This is why timing your discharge request correctly, and making sure it is accurate the first time, matters more than most borrowers expect. It is also a large part of why brokers handle this step rather than leaving it to the customer.
Should you ask your bank to reprice before refinancing?
Before starting a discharge at all, it is worth asking your current bank whether it will improve your rate. Lenders will sometimes offer a better deal to an existing customer who raises the issue, particularly one with a strong repayment history and reasonable equity in the property. The gap between what banks offer new customers versus existing ones is sometimes called the loyalty tax, and a quick repricing request can close some of that gap without you having to switch at all.
A broker can help you weigh a repricing offer from your current bank against the market, comparing it with 60+ lenders so you can see whether staying or switching works out better.
Bank-specific discharge guides
Every bank runs its own version of this process, with slightly different request channels, portals, and timelines. For detail specific to your current lender, see:
Get help with your discharge and refinance
You do not need to manage discharge paperwork on your own. A broker can prepare and lodge the request with your current bank, compare your rate against 60+ lenders, and coordinate settlement from start to finish. Book a free call and we will walk through your options, at no cost to you.