We can help you with the changeover by contacting your existing lender to prepare the discharge of your existing mortgage. We will require your written consent to do this as well as signing any documents required by your existing lender.
If you are buying and selling at the same time and are able to arrange a simultaneous settlement i.e., you are able to settle the sale of your existing property at the same time as the purchase of your new property, we will assist you to co-ordinate the settlement process.
If you have to settle the purchase of the new property before settling the sale of your existing property, you may need a loan to cover both properties. In this case, we may be able to provide a bridging loan, subject to you being able to meet equity requirements and have sufficient income to meet the interim repayments.
Miscellaneous Fees and Charges
You might have to pay early discharge fees or exit penalties to your existing lender. The level of fees may depend on the amount of your loan and the length of time you have had your existing loan. In the long run these extra costs may be more than covered by a cheaper interest rate and/or reduced fees on the new mortgage.
When calculating the amount of money you need to complete the purchase of the new home there are a number of costs you will need to allow for:
- Government Fees - including stamp duty on transfer and on the mortgage.
- Legal Fees - including Conveyancing and property search fees
- Property related costs - including council and water rates and in the case of a unit purchase you will have strata fees.
- You may also have to allow for other costs such as building and pest inspections.
Mortgage Stamp DutyYou may be required to pay mortgage stamp duty on the amount of the new loan. We will assist you to determine the amount.
Accrued InterestWhen you payout the loan from your existing lender it will include all of their costs to repay the existing loan. This will also include accrued interest to the date of settlement. You will need to allow for the total amount when determining the amount of money you need to borrow.
Lenders Mortgage Insurance (LMI)The LMI fee applies when borrowings exceed 80% of the property's value (on a full documentation loan), this covers the lender if you cannot repay your loan and the property is sold for less than the amount of the loan. We may be able to add the cost of the mortgage insurance
Building InsurancePrior to settlement of your loan you may need to provide proof that your property is insured. If the property is a unit this will be insurance taken out by the Owners Corporation.
