Mortgage Discharge Fees in Canada (2026)
When you switch lenders at renewal, three fees show up on the payout statement: the outgoing lender's discharge fee, the provincial registration fee, and legal or notary costs.
Reviewed by Scott Dillingham · Licensed Mortgage Agent (Ontario, Level 2) · Updated August 11, 2026
Switch or stay — we'll run the math
Quick answer: Big Six discharge fees in 2026 run roughly $260–$340 (TD and Scotia $340; BMO $260). Add provincial registration (~$50–$80) and legal/notary ($500–$1,200). Straight renewals with your current lender have no discharge fee — you only pay when you leave. Many new lenders cover most switch costs on promo.
Updated August 2026. When you switch lenders at renewal, three fees show up on the payout statement: the outgoing lender's discharge fee, the provincial registration fee, and legal or notary costs. Here's what each Canadian lender charges and which fees the new lender usually covers. Renewing in 90 days — talk to LendCity for a free switch-cost review.
Key Takeaways
- • Big 6 discharge fees in 2026: TD $340, Scotia $340, RBC ~$300, BMO $260, CIBC $295, National Bank $300.
- • Monolines (First National, MCAP, CMLS, RFA, Strive): $340–$400 flat.
- • Provincial registration: Ontario $80, BC $77, Alberta $50, Quebec ~$200 (notary-dependent).
- • Legal / notary: $500–$1,200 (Quebec $700–$1,400).
- • Collateral-charge discharges (TD default, many at NBC) cost $200–$500 more in legal review.
- • New lender often covers appraisal + legal and sometimes up to $500 of the outgoing discharge on switch promos.
- • No discharge fee applies to a straight renewal with your existing lender — only when you leave.
What a Discharge Fee Actually Covers
When you pay out a mortgage, the lender has to prepare a formal discharge document, file it with the provincial land registry, and release the charge on title. The "discharge fee" or "assignment fee" on your payout statement is the lender's internal cost for this administrative work, priced uniformly across their book. It doesn't include the provincial registration fee to actually file the document, and it doesn't include your lawyer's or notary's cost to coordinate the transaction.
These fees are disclosed in your original mortgage commitment letter, and they can change between origination and discharge — lenders update them annually. The fee on your payout statement is the current posted fee on the discharge date, not the one in effect when you signed the mortgage.
Discharge Fees by Canadian Lender (September 2026)
| Lender | Discharge Fee (2026) | Charge Type | Typical Legal Add-On |
|---|---|---|---|
| TD Canada Trust | $340 | Collateral (default) | +$200–$500 (solicitor review) |
| RBC Royal Bank | ~$300 | Standard | Standard switch legal |
| BMO | $260 | Standard (collateral optional) | Standard switch legal |
| Scotiabank | $340 | STEP = collateral | Higher if STEP/collateral |
| CIBC | $295 | Standard | Standard switch legal |
| National Bank | $300 | Collateral (All-In-One) or standard | Higher if All-In-One |
| First National | $340 | Standard | Often legal-paid inbound |
| MCAP | $350 | Standard | Often legal-paid inbound |
| CMLS Financial | $340 | Standard | Broker-channel promos vary |
| RFA / Strive / Community Trust | $375–$400 | Standard | Confirm promo coverage |
| Large credit unions (Meridian, Vancity, Servus) | $0–$300 | Standard or collateral | Member waivers common |
| B-lenders (Home Trust, Equitable) | $350–$500 | Standard or collateral | Higher admin on exit |
Fees as of September 2026. Always confirm with your payout statement — these update annually. See also FCAC: Discharging a mortgage.
Total Switch Cost Snapshot (Ontario, Illustrative)
Discharge fee alone is rarely the full bill. Use this snapshot with our switch vs. stay calculator and title insurance & legal fees guide.
| Scenario | Gross Cost | After Typical Promo | Notes |
|---|---|---|---|
| Standard charge → monoline | ~$1,400–$1,900 | ~$100–$300 | Legal-paid switch common |
| TD collateral → monoline | ~$1,800–$2,400 | ~$150–$500 | Extra solicitor review |
| Quebec notarial switch | ~$1,500–$2,800 | ~$800–$1,500 | Fewer full legal-paid promos |
| Straight renewal (same lender) | $0 discharge | $0 | No payout / no discharge |
Provincial Registration Fees
Every province charges a fee to register the new mortgage and discharge the old one. These flow through your lawyer or notary and appear on the closing statement as disbursements.
| Province | Mortgage Registration | Discharge Registration |
|---|---|---|
| Ontario | $80.50 | $80.50 |
| British Columbia | $77 | $77 |
| Alberta | $50 + $1.50 per $5,000 | $50 |
| Saskatchewan | 0.3% of mortgage | ~$160 |
| Manitoba | ~$110 + land transfer component | $100 |
| Quebec | ~$150 (Land Register) | ~$50 radiation + notary act |
| Nova Scotia | $103 | $103 |
| New Brunswick | $80 | $80 |
Worked Example: Total Cost to Switch in Ontario
Example: $485,000 switch from TD to First National (Ontario, 2026)
TD collateral charge discharge fee: $340
Ontario mortgage registration (new charge): $80.50
Ontario discharge registration: $80.50
Title insurance (FCT): $275
Solicitor legal fee (collateral discharge): $850
Appraisal: $425
Gross cost: $2,051
First National Excalibur switch promo covers:
— Appraisal: -$425
— Title insurance: -$275
— Legal: -$850
— Discharge (up to $500): -$340
Net cost to borrower: $161 (the two Ontario registration fees).
Annual savings at 0.22% lower rate on $485,000: $1,067/year. Break-even: under 2 months.
Why Collateral Charges Cost More to Discharge
A collateral charge is registered for more than the mortgage amount — typically 125% or sometimes the full purchase price — and secures all debt obligations with that lender, not just the mortgage. When you discharge, the outgoing lender has to certify that no other obligations remain (no HELOC draw, no overdraft, no linked credit card balance), which takes longer and requires the new lender's lawyer to do a full solicitor review instead of using fast-track title insurance.
Net effect on costs: expect $200–$500 in additional legal fees, a slower close (often 25–40 days instead of 10–14), and fewer "simplified switch" program eligibility. TD mortgages are always collateral by default. Scotia STEP is collateral. National Bank All-In-One is collateral. Some HELOC-attached mortgages at every Big 6 are collateral. See our charge type guide.
How the Payout Statement Works
When you've signed the switch paperwork and the closing date is set, your new lender's lawyer orders a payout statement from your existing lender. The statement lists:
- Principal balance on the quoted payout date
- Accrued interest to the payout date
- Prepayment penalty (if breaking mid-term)
- Discharge or assignment fee
- Per-diem interest beyond the quoted date (typical 5–15 day buffer)
- Any miscellaneous charges (NSF fees, inspection fees, property tax arrears the lender covered)
The statement is binding: the outgoing lender must discharge for that amount on that date. Your new lender wires the funds through the lawyer's trust account, the old mortgage is paid out, and the discharge is registered with the province within 30–60 days. If you're renewing straight with your existing lender, none of this happens — you just sign the renewal offer.
Quebec: Notary-Specific Considerations
Quebec's civil-law system uses a notary (notaire) instead of a common-law lawyer. On a discharge, the notary prepares the radiation of the hypothec, files it with the Quebec Land Register, and issues a quittance. Fees are higher — $700–$1,400 for a switch file, compared to $500–$900 in Ontario or BC.
Quebec switches often require two notaries: one for the outgoing lender and one for the new lender. Fewer switch promos cover Quebec notary fees, so out-of-pocket costs to switch are higher. The math still works in favour of switching if the rate gap is meaningful, but the break-even is slower. Quebec borrowers should get a firm notary fee quote before signing.
Frequently Asked Questions
How much is a mortgage discharge fee in Canada in 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.
Do I pay a discharge fee at a straight renewal?
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.
Why does discharging a collateral charge cost more than a standard charge?
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.
Does the new lender cover discharge and legal fees when I switch?
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.
What is a mortgage payout statement and when do I get one?
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.
What is a Quebec notary doing differently on a mortgage discharge?
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.
How much is a TD mortgage discharge fee?
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.
How much is an RBC, Scotia, BMO, or CIBC discharge fee?
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.
How do I avoid or reduce mortgage discharge fees when switching?
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.
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