Mortgage Discharge Fees in Canada (2026)

The fee charged by the outgoing lender typically runs $0–$400 depending on the institution. TD, Scotia, and most monolines charge $340–$400 as a flat discharge/assignment fee. BMO and CIBC sit around $260–$300. RBC charges approximately $300. Some credit unions waive it entirely for members in good standing. This is separate from provincial registration fees ($50–$80) and legal/notary fees ($500–$1,200), which are all part of the total cost to leave.

No. If you're renewing with your existing lender — signing the renewal offer without changing lenders — there is no discharge. The mortgage stays registered; only the rate and term reset. Discharge fees only apply when the mortgage is being paid out and the charge removed from title, which happens when you switch lenders, refinance with a new institution, or sell the property.

A standard charge registers for the exact mortgage amount and discharges cleanly. A collateral charge (TD's default, many at National Bank and HELOCs) is typically registered for 125% or more of the mortgage amount and secures all obligations you have with that lender — sometimes including credit cards, lines of credit, and overdraft. Discharging it requires the lender to confirm no other obligations exist, the legal work is more complex, and new lenders must do a full solicitor review instead of title insurance. Expect legal fees $200–$500 higher, and in some cases the switch cannot use a simplified-switch program at all.

Usually yes on insured switches, and often yes on uninsured switches. In 2026, Scotia eHOME, First National Excalibur, MCAP Preferred, RBC Simplified Switch, and most broker-channel monolines offer 'legal-paid' switch specials covering appraisal, title insurance, legal review, and up to $500 of the outgoing discharge fee. They rarely cover every dollar of the outgoing lender's fee — if TD charges $340 and the promo covers $300, you pay the $40 gap. Collateral-charge discharges are covered less often because the legal work costs the new lender more.

A payout statement is the outgoing lender's official document showing the exact amount needed to fully discharge the mortgage on a specific date. It includes principal balance, accrued interest to the payout date, any prepayment penalty, the discharge/assignment fee, any per-diem interest beyond the quoted date, and trust disbursements. Your lawyer or notary orders it 5–10 days before closing, and it is binding on the outgoing lender. If you're switching, the new lender uses this figure as the payout target.

Quebec uses a civil-law notary (notaire) rather than a common-law lawyer for real estate transactions. On a discharge, the notary prepares the radiation (formal removal of the hypothec from the Quebec Land Register), coordinates with the new lender's notary, and files the discharge through the provincial registry. Fees run $700–$1,400 for a switch file in Quebec, higher than common-law provinces because of additional notarial-act requirements. Quebec switches are more expensive overall, and fewer lenders offer legal-paid switch programs in Quebec — confirm coverage before signing.

TD's posted discharge/assignment fee is typically $340 in 2026. Because TD registers collateral charges by default, expect higher legal review costs ($200–$500 more) than a standard-charge discharge. Many monoline switch promos still cover most of the fee — confirm the promo cap before you sign.

Approximate 2026 lender discharge fees: Scotiabank $340, RBC ~$300, CIBC $295, BMO $260. These are separate from provincial registration (~$50–$80) and legal/notary fees ($500–$1,200). Always verify on your payout statement — lenders update fees annually.

Ask the new lender for a legal-paid switch promo that covers appraisal, title insurance, legal, and up to ~$500 of the outgoing discharge. Stay with your current lender if you renew straight (no discharge). Time the switch for maturity so you avoid mid-term prepayment penalties on top of discharge costs.