Discharge fees can leave a sour taste in your mouth, given you’re handing over more of your money to the lender after years or even decades of already doing so.

If this is a fee you’d rather avoid, Savings.com.au has compiled a list of home loans that have no discharge fees.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.


Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
70%
Featured Online ExclusiveUp To $4K Cashback
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
6.14% p.a.
6.39% p.a.
$2,434
Principal & Interest
Variable
$248
$350
70%
Flexible Home Loan Options
  • $0 application fee & fast turnaround times
  • Estimate your borrowing power in as little as 1 minute
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.


What is a discharge fee?

A discharge fee, also known as a settlement or termination fee, refers to a fee a lender may charge you to cover the cost of wrapping up your loan. Completing a loan requires paperwork and labour from the lender, which you may be required to reimburse them for. These fees typically range anywhere from $150 to $400. Each of the big four charges a $350 discharge fee, except ANZ, which charges $320 at the time of writing.


Home loans with no discharge fees

The table below shows home loans with some of the lowest interest rates on the market that also have no discharge fees:

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
Important Information and Comparison Rate Warning

Rates correct as of . View disclaimer.


Other exit costs you may incur

A discharge fee falls under the umbrella of home loan exit fees. Exit fees were banned by the Gillard Government on 1 July 2011, but they can still be charged if you took out your home loan prior to this. Given home loans can last for as long as 30 years, you may want to double-check with your lender if you will be subject to them.

If you pay off your home loan early you may also be subject to early exit fees, also known as early termination, early discharge, deferred establishment, or deferred application fees. These are charged to cover the cost of the loss the lender will incur from finishing up your loan early. These can be costly and are generally best avoided, so speak to your lender about how much they might be or check the terms and conditions of the loan.

Breaking a fixed-rate mortgage, either by paying it off early or refinancing, is also an exit cost you may incur. These can be even more costly than early exit fees, often costing thousands of dollars, and the advantages of breaking the fixed loan won’t always outweigh the disadvantages.

See a complete list of home loan fees you can be charged here.


Savings.com.au’s two cents

In the grand scheme of a home loan, discharge fees are unlikely to break the bank, as a few hundred dollars is very little compared to the hundreds of thousands a mortgage can cost.

While it's great if you find a mortgage that won’t charge you one, it should be pretty far down on the list of things to look at when shopping between lenders. Always be on the lookout for a low-interest rate, features you may want, and low or zero ongoing costs. A $0 discharge fee should be a bonus.

Photo by Roberto Nickson on Unsplash





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