Mortgage Discharge Authorities: Navigating the Final Step ofYour Mortgage

A Mortgage Discharge Authority (MDA) is a critical, yet often overlooked, document in the property process. It’s the formal instruction that authorises your Lender to release the mortgage from your property title, essentially freeing you from that loan. The process, however, differs significantly depending on whether you are refinancing or selling, and understanding who handles what is key to a smooth settlement.

The Process if you are REFINANCING

When you refinance to a new Lender, you are essentially conducting a financial “swap” on settlement day. 

Your new Lender pays out your old loan and registers a new mortgage in their favour.

• Who Takes Care of What? This process is highly coordinated between the Lender and your conveyancer.
  • Your Skilled conveyancer acts as the central point of contact, ensuring the MDA is signed and returned, and coordinating the electronic settlement via the PEXA platform. 
  • The old Lender is paid out, the existing mortgage is discharged, and the new one is registered simultaneously. 
  • Your role is primarily to sign the documents provided by your conveyancer.

The Process if you are SELLING and BUYING on the SAME DAY

This scenario is more complex. 

The funds from the sale of your current property must be used to discharge that mortgage before you can use the equity to complete the purchase of your new home.

• Who Takes Care of What?Your Skilled conveyancer will assist you. They will:
  1. Obtain the MDA from your outgoing Lender.
  2. Ensure you sign it well in advance of settlement.
  3. Coordinate with the Lender on the sale settlement to ensure the exact mortgage payout figure is available.
  4. Orchestrate the entire chain: the sale settles, the old Lender is paid, and the mortgage is discharged, and then the purchase settles, all in a carefully sequenced electronic process.

The Challenge: Why Lenders Can Drag Their Feet

Delays with MDAs are a common cause of settlement stress. Lenders can be slow for several reasons:

1. Internal Processing Times: Large Lenders process thousands of discharges. Yours is just a file in a queue to them.
2. Incorrect Paperwork: A single missed signature or incorrect detail can see the form rejected, sending you back to square one.
3. Complex Customer Service Structures: Getting a clear update can be difficult, often involving long call centre wait times with staff who may not have direct access to the discharge team.

This is where your Skilled conveyancer’s expertise is invaluable. 

We know the specific contacts and portals within each Lender to follow up proactively.

We ensure the MDA is submitted perfectly the first time and relentlessly chase progress to prevent a delay that could jeopardise your entire property chain.

Don’t let a bureaucratic hurdle put your settlement at risk. 

Partner with a conveyancer who knows how to manage the process. Contact Skilled Conveyancing on 03 9729 3512 or email us today to ensure your mortgage discharge is handled with precision and efficiency.