Closing your home loan

Your home loan account will not automatically close when you have repaid it. You need to tell us if you want to close your home loan.

You have two options:

  1. Close your home loan account and discharge your mortgage.
  2. Close your home loan account.

Continue reading to explore your options. If you have questions or want to discuss your options, you can book an appointment with a home lending expert or feel free to contact us on 13 78 79.

Your options when closing your home loan

Option 1: Close your home loan and discharge your mortgage

What does it mean to discharge a mortgage?

When you have a home loan, the bank holds the Certificate of Title until the loan has been repaid. At that point, you can remove the lender from your title by discharging your mortgage.

If you choose to refinance your loan to another lender or sell your property, you will need to discharge your mortgage before settlement can take place.

By telling us you want to discharge your mortgage, your home loan will also be closed.  You’ll need to complete a mortgage discharge or release form to release the mortgage over the property you have provided as security for your home loan.

Discharge your mortgage

Use the mortgage discharge authority form to give us instructions about your loan. 

Option 2: Close your home loan account

Depending on what your future goals are, you might want to close your home loan without discharging your mortgage. This could be the right option if you’re considering taking out another loan in the future, for example to:

  • Renovate your home, go on holidays or buy a new car.
  • Invest in property, shares or super.

You will not need to pay any discharge fees until you decide to discharge your mortgage.

If you decide to close your home loan and not discharge your mortgage, you’ll need to visit your local branch.

See branch locations

These are the key steps to close your home loan:

  1. Visit your local branch.
  2. Your banker will provide you with a payout figure (the home loan balance must be $0 in order for the loan to close).
  3. Where applicable, the following actions need to be taken before the account can be closed:
    • Cancel any direct debits or scheduled repayments.
    • Cancel any offset arrangements.
      Ask your banker if you need guidance.
  4. The home loan will close 1-2 days after the banker has processed your closure request.
  5. Your home loan closing statement will be available to view via NAB Internet Banking (or you may receive it in the mail).

Things to consider when closing your home loan

  • If you have a joint home loan you will need to consider how your account authority is set up. 

    Account authority means nominating what different borrowers or signatories can do with your account. Depending on how your account authority is set up, one or all parties will need to attend the branch to authorise closure of your home loan.

    If you are unsure who has the authority to close your home loan, speak to one of our bankers.

  • The payout figure is the closing balance of your loan plus any outstanding accrued interest, fees and charges (if applicable). In order to close your account, you will need to pay the payout figure into your loan account on the same day it is quoted. This will ensure the balance is $0 so the home loan can be closed.

  • Once the account is closed, you will be able to view your home loan closing statement (via NAB Internet Banking or you may receive it in the mail, depending on your communication preferences).

    If you decide to take out a new home loan in the future, you will need to complete a new application.

  • When you discharge your mortgage with NAB, the following fees apply:

    • Mortgage Discharge Fee – this includes preparation of discharge, attending settlement and lodgement of documents where applicable and is charged by NAB.
    • Government Fee - this is the fee charged by the Land Titles Office for making changes to the Certificate of Title; the amount of the fee depends on the state in which the property is located.

    If you choose not to discharge your mortgage, NAB will remain listed on your Certificate of Title.

Get in touch

Visit a NAB branch

Visit your nearest NAB branch to speak to us in person.

Important information