Discharging your client's home loan

There are three main reasons to discharge an entire home loan, including if your client is:

• selling their property
• paying off their home loan in full, or
• refinancing to another lender. 

The Discharge Authority form needs to be completed and signed by all borrowers with wet ink, and sent to the email address provided on the form.

Please note, electronic signatures won’t be accepted.

Our solicitor will hold the discharge instructions for 90 days. After this point the instructions will expire and new instructions will be required. 

After your client has notified us of their discharge, you can get updates on the progress of their discharge via the contacts outlined below.

• Refinancing to another lender:  You’ll need to contact the bank they’re refinancing to, to check the status of their settlement. The other lender will schedule the discharge in with LegalStream when they’re ready.
• Sale: You’ll need to contact their solicitor or authorised representative to check the status of the settlement. They’ll engage and schedule the settlement in with all parties involved.
• Repaying your loan: Please contact our solicitor, LegalStream on 02 9223 7919

For home loans with a BSB starting 182, the offset will automatically be de-linked from the home loan account and converted to a transaction account (generally up to four days prior to the discharge date) and your client will no longer receive any offset interest benefit.

Your client can still access their account online as normal and their account number and any debit card(s) will remain the same.

For home loans with a BSB starting 183 (or previously 032), the offset account will be frozen in preparation for calculation of the payout figure, usually four business days prior to settlement. Any available funds in their offset account will be used to reduce their payout figure.

When your client’s home loan is discharged, their offset account will be closed at the same time. If your client would like to open a transaction account, they can apply online.