Mortgage Discharge Fee

G'day

I recently refinanced but was a bit surprised at the discharge fee i was charged.
When i signed up 4 years ago the Discharge fee was shown as $400 but i was charged $535.

Should i follow this up and ask for $135 to be refunded or is it common practice for the discharge fee to increase?

Just wondering has anyone had something similar happen to them and whether it worth chasing up or not.

Cheers

Comments

  • CPI

  • What is the exact wording around the "…signed up 4 years ago the Discharge fee was shown as $400 …"?
    I doubt that a bank would restrict themselves to charging a definitive $ value, when the fee could be charged at some time out to 20-25 years in the future when that $ value has probably diminished significantly.

    • on the application form with all the other fees and charges

      • +2

        What does the actual mortgage T&Cs say? This will be referred to. I daresay there will be a condition allowing them to alter fees from time to time.

        EDIT: Just realised your in Perth. There's also a Landgate discharge\transfer fee for lodgement that your bank has likely incorporated.

        • I assume this was covered under Government Fees (mortgage registration, mortgage discharge, title search) and is itemised separately

          • @Numpty21: With your mortgage documents will be a nice thick contract. It will refer to the bank fees in there. I think you are only reading the Schedule to the mortgage document.

  • Definitely check with the bank.

    • yeah mate i think i will
      was just seeing if anyone here had a similar experience and if it's worth the effort or not.

      • +1

        Always ask. Be prepared for the bank to tell you they have sent a notice already (usually along with a statement)

      • and remember trust no one and question everything.

        • +1

          Why should I question everything?

          • @zeggie: Because curiosity killed the cat.

  • +1

    Check how much the land titles office fee is first. It's also possible they moved the loan exit fee into the discharge work experience kid, I mean 'administration'. When the gov tried to make switching banks easier/cheaper quite a few fees were rearranged.

  • i thought it's illegal to have discharge fee after 2011 july? when did u make ur mortgage?

    • took it out in 2015
      i think exit fees were made illegal but discharge fees appeared in their place!

    • Seperate things. Discharging a mortgage takes a fair bit of paperwork with the relevant authorities. Thus why every financial institution charges them. They existed well before exit fees were the norm.

      Exit fees are to "lock in" a customer and prevent them from leaving. Those have been banned.

      • I'd be interested to know what discharge fee was being charged prior to July 2011 and have they increased dramatically after the ban.

        Any ideas what a typical exit fee was per July 2011?

        • There's so many financial institutions whom each have multiple products, so pretty hard to answer that one.

        • I worked at Bankwest in 2010 and from memory they charged $330 back then.

  • +1

    I've worked in the discharge team before, and I would definitely dispute the fee. Sometimes they overcharge and give a refund. Dispute the fee and stand your ground.

  • +1

    Update:
    I sent an email to my previous provider asking for an explanation why the discharge charged was more that stated on my contract documents.
    No response after 10 days so i logged a complaint with AFCA
    Within 24hrs of logging the complaint with AFCA i got a call from my previous provider to say they were looking into my request.
    They again contacted me the next day saying that their fee did increase on 1 August 2016 to $535 and notification of this was set out in the statement issued.
    However as a goodwill gesture they are willing to return the difference of $135.

    Good outcome for me in the end

  • +1

    Glad to hear the good outcome.
    Do you mind to share which bank charged $535 for discharge?

    • AHL Investments Pty Ltd. (Aussie)

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