Refinancing Home Loan
There are a small number of banks who have introduced a different, refreshingly fast and easy way of refinancing home loans. The goal is to speed up the process of what has previously been a long, deliberately drawn-out affair when transferring your home loan from one lender to another.
Your existing lender may be charging you high interest rates. Refinancing away from them may be made more difficult than it needs to be. Your existing bank may delay the home loan refinance as they benefit financially each and every day that they manage to keep your home loan. The simple truth is that by delaying everyone who discharges a home loan by a couple of weeks or more, they make a lot more money when multiplied by the huge number of customers they have.
Delaying your home loan refinance may stop you from purchasing another property, perhaps an investment, or releasing cash in a timely manner. With a fast refinancing home loan process you just don’t give your existing lender the opportunity of slowing the process down
The difference between the way this can be done now, with a small number of lenders, and the way it used to be, is that previously once the paperwork was signed and returned to the new lender, the new lender would then fax the discharge authority to the Outgoing Financial Institution (OFI). A settlement date would then have to be agreed. A number of documents would then be prepared to be exchanged at the settlement meeting to complete the transaction. In the meantime a Mortgage Retention Team member might be put in touch with you to dissuade you from changing lender.
However, with the new way of fast refinancing home loans, no settlement meeting is required or booked. Instead all correspondence and settlement funds are paid electronically into your current home loan account so that the loan is settled in full, just a few days after the new lender receives your signed loan documents. This way the time taken is drastically reduced and the new loan account is established far more quickly.
An indicative payout figure needs to be provided to the new lender together with an indication of any extra funds required. An indicative payout figure can be calculated from a recent mortgage statement from your existing lender which could be in the form of a download of your current mortgage statement from the internet. A small buffer of $1,000 may be added as a deferred establishment fee and to allow for any further interest dye and sent to the OFI, but any surplus funds would be refunded to you directly by your outgoing financial institution.
If you need help getting a home loan or assistance with any of the issues covered on this site, please call me, Vincent Woodall directly on 0451 596 575 or you can send me an email to email@example.com or alternatively please complete and submit the enquiry form below.
I am a mortgage broker in Adelaide and I am –
- Fully accredited by the Mortgage & Finance Association of Australia
- Fully qualified with the Diploma of Finance and Mortgage Broking Management
- Plus I have satisfied stringent financial and criminal record background checks.
Find a home loan with someone you can trust and who will ensure you’re getting the right home loan for you. Vincent Woodall. 0451 596 575 or alternatively send me an email to firstname.lastname@example.org .