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Discharge of Mortgage

NSWVICQLDWASATASACTNT

Form number: 05DM (NSW paper form; all states now primarily electronic via PEXA)

A dealing lodged by the mortgagee (lender) to remove a registered mortgage from a property title once the home loan has been fully repaid, enabling the property to be sold or refinanced free of encumbrance.

Issuing authority

State Land Registry (NSW LRS / Titles Queensland / Landgate WA / Land Services SA / Land Tasmania / ACT Access Canberra / NT DIPL) via PEXA Electronic Lodgement Network

Cost

Government registration fee varies by state (e.g. NSW ~$175.70, VIC ~$130, QLD ~$234, WA ~$217) plus lender discharge fee $150–$500. Total typically $300–$700.

Deadline

Must be lodged at or before settlement; lender typically requires 10–21 business days from receipt of Discharge Authority to prepare documents.

How to apply

  1. Borrower notifies their lender in writing that the mortgage is to be discharged and requests a Discharge Authority form.
  2. Borrower completes and returns the lender's Discharge Authority form, along with any required supporting documents and payout figure confirmation.
  3. Lender prepares the Discharge of Mortgage instrument electronically in a PEXA workspace (mandatory for eligible transactions in NSW, VIC, WA, SA since 2018–2020 and QLD since 2021).
  4. Conveyancer or solicitor representing the mortgagee signs the discharge instrument digitally within the PEXA workspace.
  5. All parties (buyer, seller, incoming mortgagee if refinancing) join the PEXA settlement workspace and verify funds.
  6. At the scheduled settlement time, PEXA automatically disburses funds and simultaneously lodges the Discharge of Mortgage (and Transfer and new Mortgage if applicable) with the relevant state Land Registry.
  7. Land Registry registers the dealing; the mortgage notation is removed from the Torrens title.
  8. Borrower receives confirmation of registration; lender must release any certificate of title held.

Related topics

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