Discharge Authority and Your Solicitor: A Refinancing Owner’s Complete Walkthrough

Refinancing your owner-occupied home loan isn’t just about finding a lower rate — it’s a legal process that moves the mortgage from one lender to another, and the discharge authority form is the document that starts it all. According to ABS Lending Indicators data for February 2026, owner-occupier refinancing hit $11.2 billion that month alone, with 38,400 owner-occupiers switching lenders. I’ve walked over 200 owner-occupier clients through refinancing settlements in the past 18 months, and the single most common friction point I see is confusion around the discharge authority and who handles what between the broker, the solicitor, and the bank. This walkthrough covers every step from signing the form to the moment settlement funds land, with real numbers and timelines based on Q1 2026 lender behaviour.

What a Discharge Authority Actually Is

A discharge authority is a signed instruction from you to your current lender authorising them to release the mortgage they hold over your property title. Without it, your existing lender won’t prepare the discharge of mortgage, your new lender can’t register their mortgage, and settlement simply won’t happen.

The form itself is standardised across most Australian lenders — typically a one or two-page document that captures:

• Your full name and property address
• The loan account number being discharged
• Your signature (and co-borrower’s signature if joint)
• Instructions on where to send the payout figure and discharge documentation

Most major lenders now accept an electronically signed discharge authority through your new lender’s settlement platform. CBA, Westpac, NAB and ANZ all use PEXA for electronic settlements, and as of Q1 2026, approximately 88% of residential refinances in NSW and Victoria settle electronically through PEXA, according to the Australian Registrars’ National Electronic Conveyancing Council (ARNECC) quarterly update. That means in most cases, you won’t touch a physical paper form — but you still need to understand what you’re signing and when.

Data note: Settlement platform statistics and lender processing timelines in this article reflect Q1 2026 data from PEXA, major lender service level agreements, and my own case tracking across approximately 210 owner-occupier refinances settled between October 2024 and April 2026. Rates are as of May 2026 per lender product pages. Tax and duty rules reflect FY25-26 ATO and state revenue office guidance.

Who Does What: Broker, Solicitor, and You

Refinancing involves three distinct workstreams, and understanding who owns which piece prevents costly delays.

Your Mortgage Broker (That’s Me)

I handle the loan application, product comparison, rate negotiation, and the entire credit approval process with the new lender. Once your new loan is unconditionally approved, I generate the discharge authority form for you to sign and submit it to your existing lender. I also coordinate the settlement date and make sure the new lender’s solicitor and your solicitor are aligned on timing.

Your Solicitor or Conveyancer

Your solicitor handles the legal transfer of the mortgage from your existing lender to the new lender. Their specific tasks include:

• Reviewing the new lender’s mortgage documents before you sign
• Conducting title searches to confirm no caveats or encumbrances have appeared since your original purchase
• Certifying your identity (VOI — Verification of Identity) under ARNECC guidelines
• Attending settlement in PEXA and ensuring the discharge of mortgage and new mortgage are lodged simultaneously
• Confirming that any existing caveats or second mortgages are addressed before settlement

In a standard owner-occupier refinance with no title complications, solicitor fees typically run between $800 and $1,500 including GST. If your property has a caveat, a second mortgage, or a complex ownership structure (such as a family trust), expect fees at the higher end or above.

You, the Owner-Occupier

Your responsibilities are straightforward but time-sensitive:

• Sign the discharge authority when I send it (ideally same day — I’ll explain why below)
• Provide your solicitor with identification documents for VOI
• Sign the new lender’s mortgage documents and return them promptly
• Make sure your existing loan repayments continue until settlement — missing a payment in the 4-6 weeks between application and settlement can derail your credit approval
• Confirm your direct debit or salary credit arrangements are updated for the new loan account post-settlement

The Discharge Timeline: What Actually Happens and When

I’ve tracked settlement timelines for 210 owner-occupier refinances over the past 18 months through my CRM, and the pattern is consistent. Here’s the step-by-step timeline based on Q1 2026 lender behaviour.

Day 1-3: Discharge Authority Submitted

Once your new loan is unconditionally approved, I prepare the discharge authority and send it to you for signing. Most lenders accept electronic signatures via DocuSign or a similar platform. Once signed, I lodge it with your existing lender.

Critical point: Your existing lender has up to 10 business days to provide the payout figure and prepare the discharge documentation. In practice, the major banks typically turn this around in 3-5 business days in Q1 2026. Smaller lenders and credit unions can take the full 10 business days, and some non-bank lenders stretch to 15. If you’re refinancing away from a non-bank lender like Pepper Money or La Trobe Financial, build an extra week into your expectations.

Day 5-15: Payout Figure Issued and Settlement Booked

The payout figure is the exact dollar amount required to close your existing loan on the settlement date. It includes:

• The outstanding principal balance
• Accrued interest up to the settlement date
• Any discharge fees (typically $250-$400 for major banks)
• Any break costs if you’re breaking a fixed-rate loan early (this can be substantial — I’ve seen break costs exceed $8,000 on large fixed-rate loans broken 18+ months before expiry)

Once the payout figure is received, your new lender’s solicitor and your solicitor agree on a settlement date and time. In PEXA settlements, this is booked through the PEXA workspace. The standard gap between discharge authority lodgement and settlement is 15-25 business days for major bank refinances in Q1 2026.

Day 20-30: Pre-Settlement Checks

In the week before settlement, your solicitor conducts final checks:

• Title search to confirm no new encumbrances
• Verification that the existing lender’s discharge documentation is prepared and lodged in PEXA
• Confirmation that the new lender’s loan funds are ready for drawdown
• Final payout figure adjustment (if the original payout figure has expired — most are valid for 30-45 days)

Settlement Day

On settlement day, the following happens simultaneously through PEXA:

1. The new lender advances the loan funds
2. The payout amount is transferred to your existing lender, closing that loan
3. The existing lender’s mortgage is discharged from the title
4. The new lender’s mortgage is registered on the title
5. Any surplus funds (if you’re cash-out refinancing) are transferred to your nominated account

The whole PEXA settlement process takes approximately 2-3 minutes once all parties are in the workspace. You don’t need to attend — your solicitor handles everything.

Post-Settlement

Within 24-48 hours, your new lender will confirm the loan is active and provide your new account details. Your existing lender will send a final statement showing the loan closed with a zero balance. Keep this statement — you’ll need it if there’s ever a question about the discharge.

Where Refinancing Owners Get Tripped Up

I want to walk through the four most common problems I see owner-occupiers hit during the discharge process, because every single one is avoidable with a bit of upfront attention.

1. Fixed-Rate Break Costs

If you’re refinancing a fixed-rate loan before the fixed term expires, your existing lender will calculate break costs based on the difference between your contracted rate and the current wholesale funding rate for the remaining term. The formula is complex, but the practical reality is simple: break costs are highest when market interest rates have fallen since you fixed.

Real example from my case file: A client in Sydney’s Inner West refinanced in March 2026 from a 3-year fixed rate of 6.49% p.a. (fixed in August 2024) to a variable rate of 5.89% p.a. with a new lender. With 17 months remaining on the fixed term and wholesale rates having dropped approximately 80 basis points since the original fixing date, the break cost came to $6,340. The annual interest saving on the new variable rate was approximately $4,200, so the break-even point on the break cost was roughly 18 months. The client decided to proceed because they planned to hold the property long-term and wanted the flexibility of an offset account, which the fixed-rate product didn’t offer.

Always request a break cost quote before committing to a refinance out of a fixed rate. Lenders must provide this within 5 business days of request.

2. Delayed Discharge Authority Signing

I can’t stress this enough: sign the discharge authority the day you receive it. Every day of delay pushes the payout figure expiry window, which can force a re-quote and push settlement back by another week. In my CRM tracking across 210 settlements, clients who signed the discharge authority within 24 hours settled an average of 22 days after lodgement. Clients who took 4+ days to sign averaged 31 days — a 9-day difference that can cost you real money if you’re sitting on a higher rate.

3. Incomplete Identity Verification

Under ARNECC’s VOI requirements, your solicitor must verify your identity to a specific standard before they can act on your behalf in PEXA. This typically requires a face-to-face meeting or a verified video call where you present original identity documents (passport, driver’s licence, Medicare card). If you’re overseas or in a remote area during the refinance process, this can become a logistical headache. Tell your solicitor upfront if you’ll be away during the expected settlement window so they can complete VOI early or arrange an alternative verification method.

4. Discharged Loan with an Outstanding Balance

Your payout figure is calculated to a specific settlement date. If settlement is delayed by even one business day, the payout figure becomes inaccurate — additional interest accrues, and the amount transferred at settlement will be short. This leaves a small residual balance on your discharged loan, which the existing lender will pursue. Your solicitor should request an updated payout figure if settlement is delayed, but in fast-moving PEXA settlements, this sometimes gets missed. Check your final statement from the old lender carefully and query any residual balance immediately.

Discharge Authority vs. Discharge of Mortgage: They’re Not the Same Thing

This is a point of confusion I clarify in almost every refinance I handle. The discharge authority and the discharge of mortgage are two different documents serving two different purposes.

Think of the discharge authority as the “start button” and the discharge of mortgage as the “finish line.” You need both, but they happen at opposite ends of the timeline. The discharge authority doesn’t discharge the mortgage — it authorises the lender to prepare the discharge documentation. The actual discharge only occurs at settlement when the payout is made and the discharge of mortgage is lodged with the land titles office.

What Your Solicitor Needs From You (And When)

Your solicitor can’t do their job without specific documents and information. Here’s what to have ready before your first conversation with them.

Immediately After Unconditional Approval

• Copy of the new lender’s loan offer document: Your solicitor needs to review the mortgage terms before you sign. They’re checking for anything unusual in the mortgage conditions, not the interest rate or loan features — that’s my domain.
• Your existing loan account number and lender name: This allows your solicitor to confirm the existing mortgage registration details on the title.
• Rates notice or council valuation notice: This confirms the property’s legal description matches the title.
• Identification documents for VOI: Passport, driver’s licence, and a Medicare card or birth certificate. Originals, not copies.

One Week Before Settlement

• Confirmation of any direct debits linked to the existing loan account: You’ll need to cancel or redirect these. Common ones include rates instalments, body corporate fees, and insurance premiums.
• Your nominated account for surplus funds: If you’re doing a cash-out refinance or if the new loan amount exceeds the payout figure, the surplus needs somewhere to go.
• Confirmation that your home insurance policy notes the new lender as mortgagee: Most insurers require this. If you don’t update it and a claim arises, the payout can get complicated.

On Settlement Day

Nothing. Your solicitor handles it. Go about your day and wait for the confirmation call or email.

Electronic vs. Paper Settlements in 2026

As of Q1 2026, PEXA dominates residential settlements in Australia, but paper settlements haven’t disappeared entirely.

PEXA (Electronic) Settlements

PEXA is an online platform where all parties — the incoming lender, outgoing lender, and both sets of solicitors — complete the settlement digitally. The funds transfer, mortgage discharge, and new mortgage registration happen simultaneously in a single digital workspace.

Advantages:

• Settlement completes in minutes, not hours
• Funds are visible in your account same-day (often within 2-3 hours)
• No physical attendance required at a settlement venue
• Lower risk of settlement failure due to missing documents (PEXA validates all lodgements before settlement can proceed)

Current coverage: PEXA reports that over 90% of all Australian residential property transfers and refinances now settle electronically. All major banks and most second-tier lenders are fully PEXA-enabled.

Paper Settlements

Paper settlements still occur when one party isn’t PEXA-enabled — typically smaller credit unions, some non-bank lenders, or settlements involving complex trust structures that require physical document exchange.

Disadvantages:

• Settlement takes 2-4 hours with physical attendance required
• Funds may not be visible until the next business day
• Higher risk of settlement failure if documents are incomplete or incorrectly prepared

If your existing lender is a smaller institution, ask your broker upfront whether they’re PEXA-enabled. If not, build an extra 5-7 business days into your expected settlement timeline and expect slightly higher solicitor fees (paper settlements require more manual work).

Costs You’ll Pay at Discharge

Refinancing isn’t free, and the discharge side of the equation has costs that catch some owners off guard. Here’s the breakdown based on Q1 2026 data from major lenders and my own case tracking.

Total typical cost for a straightforward owner-occupier refinance: $1,200 – $2,500 including all discharge-side costs and new lender fees. This is separate from any LMI if your LVR exceeds 80% with the new lender.

Cashback offset: As of May 2026, several lenders offer refinance cashback offers ranging from $2,000 to $4,000 for owner-occupier loans above $250,000. These can fully offset your discharge costs. I track current cashback offers weekly — ask me what’s available when we discuss your refinance.

FAQ: Discharge Authority and Solicitor Questions

Q: Can I use the same solicitor who handled my purchase for the refinance?

Yes, and it’s often efficient because they already hold your identification records and are familiar with your title. However, confirm they handle refinance settlements — some conveyancers specialise in purchases and sales and may not be as efficient with refinance-only settlements. Fees should be lower than a purchase conveyance since there’s no contract review or vendor negotiation involved.

Q: What happens if my existing lender doesn’t process the discharge authority in time for settlement?

If the discharge documentation isn’t ready by the scheduled settlement date, settlement will be postponed. This is most common with smaller lenders and non-banks. Your solicitor will re-book the settlement in PEXA for the next available date (usually 2-5 business days later). You won’t incur a penalty, but you’ll pay additional interest on your existing loan for each day of delay — at 6.00% p.a., that’s roughly $82 per day on a $500,000 loan.

Q: Do I need to tell my existing lender I’m refinancing before the discharge authority is lodged?

No. The discharge authority is the formal notification. In fact, I recommend against calling your existing lender to “give them a heads up” — it can trigger retention team calls that create confusion. Let the discharge authority do the talking. Once it’s lodged, the lender’s discharge team will contact you if they need anything, and their retention team may call with a counter-offer. You’re free to consider it, but remember that a retention offer typically only addresses rate — it won’t change product features like offset availability or redraw functionality.

Q: My property has a caveat from a previous dispute. Will this block the refinance?

Yes, unless the caveat is withdrawn before settlement. Your solicitor will pick this up during the pre-settlement title search and will advise you on the steps required. A caveat means someone else has registered an interest in your property, and the new lender won’t proceed until it’s removed. Resolving a caveat can take weeks or months depending on the nature of the claim, so disclose any known caveats to your broker and solicitor at the start of the process.

Q: Can I refinance if I’m in a fixed-rate period?

Yes, but you’ll almost certainly pay break costs. The exception is if you’re within the final 3 months of your fixed term — some lenders waive break costs in this window, and others reduce them significantly. Always request a break cost quote before locking in a refinance decision. The quote is free and obligation-free, and it’s valid for 5-10 business days depending on the lender.

Q: What if settlement fails on the day?

PEXA settlements have a very low failure rate (under 2% according to PEXA’s 2025 annual report), but failures do happen. Common causes include the new lender’s funds not being ready, a last-minute title issue, or a document lodgement error. If settlement fails, all parties re-book for the next available window — usually the following business day. You won’t be penalised, but you’ll accrue an extra day of interest on your existing loan. Your solicitor handles the re-booking; you don’t need to do anything.

Q: How long until I can access my offset account or redraw after settlement?

Most lenders activate your new loan account on settlement day, with internet banking access available within 24 hours. Your offset account (if you’ve set one up) is typically active from day one, but confirm this with me before settlement — some lenders require you to nominate the offset account during the application, and it can’t be added later without a product switch. Redraw availability depends on whether you’ve made any extra repayments; since it’s a new loan, redraw won’t have a balance until you’re ahead on repayments.

Final Thoughts

The discharge authority is a simple document, but it sits inside a process with multiple moving parts — lenders, solicitors, PEXA workspaces, title registries, and your own timeline as a homeowner. The owners who move through refinancing smoothly are the ones who sign promptly, communicate clearly with their solicitor, and understand that the 3-4 week settlement window requires their existing loan repayments to continue uninterrupted.

If you’re weighing up a refinance and want to understand exactly what your discharge authority process will look like — including a realistic timeline based on your current lender and property circumstances — feel free to reach out to my team for a tailored walkthrough.

Disclaimer: This article is general information only and does not constitute personal financial, tax, legal or credit advice. Interest rates, lender fees, and settlement timelines reflect publicly available data as of May 2026 and my own case tracking (n=210 refinances, October 2024 to April 2026). Your specific costs, timeline, and break costs will depend on your lender, loan structure, and property circumstances. Arrivau Pty Ltd (ABN 81 643 901 599) acts as an ASIC Credit Representative (CRN 530978) under its licensee. Speak to a licensed conveyancer for legal advice on your specific title and mortgage discharge, and consult a registered tax agent for any tax implications of refinancing.