Home loans with no discharge fees

author-avatar By
on March 09, 2021
Home loans with no discharge fees

If you’re coming to the end of your home loan the last thing you want is to be stung with another cost.

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.


Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 24, 2022. 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:

Lender

Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
ZERO APPLICATION FEESFEE FREE OFFSET
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
Variable
More details
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Variable Owner Occupied, Principal and Interest (LVR < 80%)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 May 24, 2022. 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

Latest Articles

author-avatar
Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy