Mortgage Discharge Fees Still Matter in July 2026 — Even With Legal-Paid Switches Mortgage Discharge Fees Still Matter in July 2026 — Even With Legal-Paid Switches

Canadians shopping renewals in July 2026 are focused on rate — and they should be. Broker-channel insured 5-year fixed rates near 4.04% still beat many Big Six renewal letters by 0.25–0.75%. But the payout statement still includes a discharge (or assignment) fee, and that line item is where switch math gets real.

What lenders are charging

Approximate outgoing discharge fees in mid-2026:

• TD / Scotiabank: ~$340
• RBC: ~$300
• CIBC: ~$295
• BMO: ~$260
• Monolines: often $340–$400

Those figures exclude provincial registration and legal or notary work. For the full lender table, see our mortgage discharge fees guide.

Why TD files cost more

TD registers collateral charges by default. Leaving TD usually means a full discharge and solicitor review — often $200–$500 more in legal cost than a clean standard-charge assignment. That does not mean you should auto-renew. On a $500,000 balance, a 0.30% better rate still saves roughly $8,700 over five years — well above typical net switch costs after a legal-paid promo. Details: collateral vs. standard charge and TD renewal.

Still, those extra costs are usually dwarfed by the rate savings, and the OSFI prescribed-MQR exemption for uninsured straight switches has simplified qualifying on same-balance, same-amortization transfers over the last 18 months. B-20 overlays remain.

How to keep net cost near zero

Ask the inbound lender for a legal-paid switch covering appraisal, title insurance, legal, and up to ~$500 of the outgoing discharge. Many broker-channel monolines still run these in 2026. Then run switch vs. stay with your real balance and rate gap.

Quebec borrowers should budget separately: every switch needs a notarial deed ($800–$1,500). See the Quebec renewal guide.

Bottom line

Discharge fees are not a reason to accept a weak renewal letter. They are a reason to itemize costs, confirm promo coverage, and compare net savings — ideally 120 days before maturity with a licensed broker.