Discharge Fee

When you pay off your mortgage in full — at sale, at switch to another lender, or at the natural end of amortization — your lender must register a discharge with the provincial land registry to remove their charge from your title. The fee they charge to do this varies: federally regulated banks typically charge $200 to $400; some provincial credit unions charge less. If you switch lenders mid-term or at renewal ("transfer" or "switch"), the new lender often pays your discharge fees as a perk — confirm in writing before you commit. If you sell the home, you pay the discharge fee out of sale proceeds at closing. Discharge fee is separate from any prepayment penalty. If you break a fixed-rate mortgage early, you pay BOTH the prepayment penalty (often the IRD) AND the discharge fee. At natural maturity (renewal date) there's no prepayment penalty — only the discharge fee if you're switching lenders.