The last thing you need when selling your house is unexpected delays.
If you paid out your home loan prior to the introduction of electronic property titles in 2016 – and didn’t register the Discharge of Mortgage paper documents with the Victorian Land Titles Office – some upcoming changes may affect you.
These changes involve the way the Land Titles Office deals with these paper documents, and means you may need extra time to remove the mortgage from the title to your property when it comes to selling or refinancing.
Discharging a mortgage is the process of removing the lender’s (usually a bank’s) interest from the title to your property. Your lender holds the title to your property until your home loan is completely repaid. When you have repaid the loan in full, you need to follow a specific process to discharge the mortgage.
In the past, it was common practice that once a loan was paid out, the bank would release the paper Title and Discharge of Mortgage documents directly to the borrower.
Many people then stored these documents at home or with their solicitor, but often chose not to lodge the Discharge of Mortgage with the Land Titles Office straight away. It was usually only lodged when the Title was next needed – for example, during a sale, new loan, or subdivision.
Change is coming
As part of its program to convert all Titles and dealings to electronic form, the Land Titles Office has announced important changes.
From 1 March 2026, law firms such as Maddens Lawyers will no longer be able to lodge paper Discharge of Mortgage documents on behalf of clients. Instead, the original Title and paper Discharge will need to be returned to the issuing lender, which will then prepare and register a new electronic Discharge.
This change may cause delays when you next need to deal with your Title (for example, selling, refinancing, or subdividing).
What are your options?
Your first step could be to check if your title is electronic or paper.
You can do this by contacting your conveyancer / solicitor, or by performing a title search at Land.Vic to view the current status of the property’s register. The online search result will show if there is an electronic Certificate of Title (eCT) and who holds control over it. There is a $17.33 fee per title to do this.
If you find your lender is still noted on your title even though you have repaid your home loan, you can:
- Register now: Contact your conveyancer or solicitor to register the paper Discharge of Mortgage documents before 1 March 2026. This will involve verifying your identity and signing a Client Authorisation form.
- You can also choose to register these documents with the Land Titles Office yourself.
- Wait until after March 2026: At that point, you will need to return the paper Discharge to your lender and request that they prepare and lodge the new electronic version.
- Your lender may require you to fill out a Discharge Authority Form which should be available on their website, or you can contact your local lender. Once the lender receives your Discharge Authority they will process your discharge request. This process can take at least 15 working days to complete.
- Do nothing (not recommended): You may wait until you next transact on your Title. However, after March 2026, delays are likely as the bank will need to re-issue and lodge an electronic Discharge.
Fees
There are always fees for registering a Discharge, whether you arrange this now or later through your bank. Current government fees (not including legal fees) are:
- Titles Office registration fee: $125.70
- Lodgement fee: $52.80
Remember, these amounts increase on 1 July each year so the longer you leave it, the more expensive it will be. Banks may also charge their own fees after March 2026.
Discharging a mortgage is an important step, which, if not followed correctly, can delay a settlement, costing you time and money. It’s always in your best interests to know where your title is and what the details are.
If you have any questions, please contact the our conveyancing team on 1800 815 228.
