The NAB discharge authority is the form that releases National Australia Bank's mortgage over your property so a new lender can take over your home loan. If you refinance, your new lender and your broker prepare and lodge this form for you. You do not deal with the paperwork yourself, and there is no cost to you for this step.
What is the NAB discharge authority form?
A discharge authority is the legal document NAB needs to release its mortgage from your property title. It confirms your loan details, the property address, and where any payout figure should be sent. Once NAB processes it and the loan is paid out, the bank removes its interest from the title and your new lender registers theirs.
This is a normal, routine part of refinancing. Thousands of Australians switch lenders every month, and NAB processes discharge requests as standard business. It is not a sign of anything going wrong with your loan.
Where do I get the NAB discharge form?
You can request the NAB discharge form directly from NAB, either through a branch, your NAB home loan specialist, or NAB's website. NAB will ask you to complete and return it, then arrange your own payout calculation and settlement booking.
If you are refinancing through a broker, this changes. Your broker and your new lender's settlements team prepare the discharge authority for you and lodge it with NAB directly. You sign the form, but the coordination, the payout figure request, and the settlement booking are handled on your behalf, at no cost to you. This is one of the main reasons people use a broker to switch: it removes the admin from a process most people only do a handful of times in their life.
Should I ask NAB to reprice before leaving?
Yes. Before you commit to switching, it is worth asking NAB for a better rate on your existing loan. This is sometimes called a retention offer or a reprice request.
Banks often price new customers more sharply than existing ones. This gap is sometimes referred to as a loyalty tax, where borrowers who never ask for a better deal end up paying more than new customers on the same product. A quick call or a formal request through NAB can sometimes bring your rate down without you having to move at all.
If NAB cannot match a competitive market rate, or if another lender's product, features, or cashback offer suit you better, refinancing is worth pursuing. Either way, asking first costs nothing and takes the guesswork out of your decision.
What does it cost to leave NAB?
Costs vary depending on your loan type and how long you have been with NAB. As a general guide:
| Cost item | Typical range | |---|---| | Discharge fee (NAB) | Roughly $350 to $400 | | Government discharge and registration fees | A few hundred dollars | | Fixed rate break costs | Varies, can be significant | | New lender establishment fees | Often $0 to $600, sometimes waived |
If you are on a fixed rate, breaking early can attract a break cost calculated by NAB based on interest rate movements since you fixed. This figure can swing widely and is specific to your loan, so confirm the exact amount with NAB before you commit to a switch date.
These figures are a general guide only. Always confirm exact fees with NAB and your new lender before proceeding, as pricing changes over time and depends on your specific loan.
How long does a NAB discharge take?
At major banks, including NAB, a typical discharge and settlement process takes around two to four weeks from the time the discharge authority is lodged. Some settle faster, particularly for simple standalone loans with no offset or linked accounts.
The most common cause of delay is an incomplete or incorrectly completed discharge form, missing signatures, or a mismatch between the details on the form and the title. Having your broker or new lender check the form before it is lodged reduces the chance of a hold-up.
What happens at settlement?
On settlement day, your new lender pays out your NAB loan balance directly to NAB. NAB then releases its mortgage from the property title, and your new lender registers its own mortgage in its place. Any surplus funds, such as money left in an offset account, are paid to you after the payout figure is settled.
You will usually get a written confirmation from NAB once the discharge is complete, and your new lender will confirm your new loan has started. From that point, your repayments go to your new lender.
How to switch away from NAB, step by step
1. Ask NAB for a reprice or retention offer first, to check if they can match a better deal. 2. Compare rates and features across lenders, using a rate check to see where you sit against the market. 3. Choose a new lender and loan product with your broker. 4. Apply for the new loan and provide supporting documents. 5. Get formal approval from the new lender. 6. Your broker or new lender requests the discharge authority and payout figure from NAB. 7. Sign the discharge authority and loan documents. 8. Settlement occurs: the new lender pays out NAB and registers the new mortgage. 9. Confirm your new repayment schedule and cancel any old direct debits linked to the NAB loan.
Cashbacks can offset the cost
Some lenders offer cashback incentives of roughly $2,000 to $4,000 for eligible refinances. This can cover most or all of the discharge fees, government charges, and new establishment costs described above. Cashback offers change often and come with conditions, so check current terms before you rely on one to cover your switching costs.
Kookaburra Finance is not affiliated with NAB. This guide is general information only and does not consider your personal circumstances. Confirm current fees, timeframes, and offers directly with NAB and any lender you are considering.
For a look at how this compares with another major bank, see our guide on switching from CBA, or read more about refinance cashback offers currently available.
Leaving NAB or just want a better rate? Run our free rate check or book a call with Tom Smith at Kookaburra Finance. We're FBAA members, accredited with 60+ lenders, and there's no cost to you.