How To Discharge Your Mortgage Fees?
It seems someoneâ€™s always charging a fee for something. Most Canadians are quite â€śanti-feeâ€ť as a result. Even the word fee itself conjures up resentment.
It is therefore no surprise that first-time mortgagors are often disbelieving when they learn theyâ€™re being stuck with a few hundred dollars in discharge fees.
good-bye-kissDischarge fees are what some in our industry call the â€śgoodbye kiss.â€ť Theyâ€™re charged whenever you â€śdischargeâ€ť a mortgage and leave your lender. Virtually all lenders have them. The Toronto Star list below shows Ontario discharge fees at the major banks for example.
Note that there are actually real costs (governmental, legal, etc.) involved with discharging a mortgage from title. So this fee is not simply a lender cash grab. Although itâ€™s â€śinterestingâ€ť that some lenders can be $100 apart for this service.
Quick Tip: A few lenders will actually pay your old lenderâ€™s discharge fee when you switch. (Although, the lenders that do sometimes donâ€™t have the best rates.) Ask your mortgage planner for details.