Personal Finance

Mortgage discharge fee (fact check)

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  • May 19th, 2015 10:00 pm
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Deal Addict
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Sep 15, 2014
2798 posts
1641 upvotes
Scarborough, ON

Mortgage discharge fee (fact check)

Was speaking with someone at the bank today about my mortgage. I brought up the fact that they had just increased their discharge fees.. and I thought that it was quite unfair to do so retroactively (I'm 4 years into a 5 year term). He said that these were "government fees" which I find just a bit incredulous (heard that line from cellphone companies about system access fees before..)

Fact check, please?

The only thing I can find with a quick google search is the following:
"The $70.50 electronic registration (e-reg) is a mandatory fee charged by the Ontario government which eliminates the need for customers to go to their Land Registry Office to register their mortgage discharge – as this is now being done electronically."

So.. that explains $70.50 (assuming that it actually is mandatory..). But CIBC wants to charge me a lot more than that.

Are there any strategies for getting this fee reduced/waived? How likely would I be successful in doing that?
7 replies
Sr. Member
Mar 3, 2010
588 posts
42 upvotes
That discharge fee is in hundreds of dollars, more like 300 - 400 or more :(
Deal Addict
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Sep 15, 2014
2798 posts
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Scarborough, ON
ZackP wrote: That discharge fee is in hundreds of dollars, more like 300 - 400 or more :(
Actually.. I was just looking at some of the documentation I got when I entered into the mortgage ("revised mortgage disclosure statement").. looks like I should only actually owe $95.. they can't retroactively change that, can they?
Sr. Member
Apr 28, 2014
675 posts
185 upvotes
Oakville, ON
TheImp wrote: Actually.. I was just looking at some of the documentation I got when I entered into the mortgage ("revised mortgage disclosure statement").. looks like I should only actually owe $95.. they can't retroactively change that, can they?
Yes they can, and they did.

People made the same argument back in 2008 when all the Banks raised their Personal Line of Credit rates by 1%, stating that the cost to acquire funding had increased; it was to no avail.

It's a cash grab; the same way that charging a fee to move your RRSP or TFSA to another institution is a cash grab.

If you are intending to move your mortgage out of CIBC, CIBC isn't going to waive/reduce the fee to reward you for taking business away from them. Sorry.

If you are moving your mortgage to another Bank, you may be able to get the other Bank to pay CIBC's discharge fee as a condition of receiving the mortgage business.
Deal Guru
User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
Are you planning to discharge your mortgage with them now?

If so, what will you be doing? Getting a new mortgage with them? Switching lenders? Paying it out?
TheImp wrote: Was speaking with someone at the bank today about my mortgage. I brought up the fact that they had just increased their discharge fees.. and I thought that it was quite unfair to do so retroactively (I'm 4 years into a 5 year term). He said that these were "government fees" which I find just a bit incredulous (heard that line from cellphone companies about system access fees before..)

Fact check, please?

The only thing I can find with a quick google search is the following:
"The $70.50 electronic registration (e-reg) is a mandatory fee charged by the Ontario government which eliminates the need for customers to go to their Land Registry Office to register their mortgage discharge – as this is now being done electronically."

So.. that explains $70.50 (assuming that it actually is mandatory..). But CIBC wants to charge me a lot more than that.

Are there any strategies for getting this fee reduced/waived? How likely would I be successful in doing that?
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Penalty Box
Dec 27, 2013
8003 posts
4050 upvotes
Toronto
TheImp wrote: Was speaking with someone at the bank today about my mortgage. I brought up the fact that they had just increased their discharge fees.. and I thought that it was quite unfair to do so retroactively (I'm 4 years into a 5 year term). He said that these were "government fees" which I find just a bit incredulous (heard that line from cellphone companies about system access fees before..)

Fact check, please?

The only thing I can find with a quick google search is the following:
"The $70.50 electronic registration (e-reg) is a mandatory fee charged by the Ontario government which eliminates the need for customers to go to their Land Registry Office to register their mortgage discharge – as this is now being done electronically."

So.. that explains $70.50 (assuming that it actually is mandatory..). But CIBC wants to charge me a lot more than that.

Are there any strategies for getting this fee reduced/waived? How likely would I be successful in doing that?
discharge is about $320...
$250 admin work
$70 for land registry.

cry all you want they wont wave it if you are leaving.
Deal Addict
Oct 12, 2006
1451 posts
302 upvotes
Markham
if you're switching lenders, you can ask the new lender if they're willing to pay the discharge fee of your first lender. Some banks are willing to do that.
Deal Addict
User avatar
Sep 15, 2014
2798 posts
1641 upvotes
Scarborough, ON
CdnRealEstateGuy wrote: Are you planning to discharge your mortgage with them now?

If so, what will you be doing? Getting a new mortgage with them? Switching lenders? Paying it out?
I've used the prepayment options I have (increasing regular payment and lump sum payments..) such that I could pay it out now using lump sum room. But I don't know if that'll incur penalties.. so I think I might just let it run its course. I should have a balance of $600 or so (should probably prepay that, just to save a few bucks interest..) at the end of the term.

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