What is a Partial Discharge, and What Should I Look Out For?
A partial discharge is when you have more than one property secured by the same home loan, and you want to release one of those properties as security without repaying the entire loan amount. These may take longer than traditional discharges because your Lender may need a valuation done on the remaining properties. In addition, your Lender may charge you discharge fees. You may also be charged break fees or penalty interest if your mortgage was fixed rate. What is the Process for a Partial Discharge When the Original LVR is Maintained? When you partially discharge your mortgage, you need to do the following: Let your Lender know your plans. Complete and return the Discharge Authority form. Register your discharge and certificate of title A partial discharge is a straightforward process, especially when the original LVR is maintained. What is the Process for a Partial Discharge When the Original LVR has Increased? If your LVR has increased after a partial discharge, the process will be very similar. You need to notify your Lender and complete the discharge form. However, you may have to refinance your home loan to account for the increase in LVR. You may also have to pay Lender’s mortgage insurance. If your LVR has increased and you do need to refinance, you may have to pay additional fees, such as break costs. If you own two or more properties on the same home loan and are interested in a partial discharge, you should consult with the experts at Mortgage House. We can help walk you through the process and help you determine if it is the best solution for your situation. If needed, we can even help you refinance your loan.
What Do I Do to Have My Home Loan Reviewed?
Regular home loan reviews are an excellent way to make sure your home loan still works for you. Home loan reviews can save you money by lowering your interest rate and reducing your loan term. In addition, if you decide your current home loan doesn’t work for you, you can either negotiate with your current lender or refinance with a different one. Whichever you choose, you will want to find a lender who can offer your lower interest rates and beneficial features. How to Review Your Home Loan Reviewing your home loan is a simple process. First, you want to hire an experienced mortgage broker like the experts at Mortgage House. Mortgage brokers often have access to more rate information than you do because they work directly with many lenders. Second, you will want to compare the rates from various lenders. Again, your broker can help you see how your current loan stacks up with the rates and features offered by other lenders. Third, you will want to find features that work for you. Your current loan features may have worked for you at the time when you signed your loan contract. However, as your life changes, they may no longer be the best options for you. Your mortgage broker can help you find a loan that reflects your current situation with features you’ll use every day. Four, if you need to, refinance your loan. If your bank is not willing to negotiate your loan terms or features, your broker can help you refinance your loan with a lender who will. Work With the Brokers at Mortgage House Not only can the brokers at Mortgage House help you review your home loan, but we can also help you refinance your loan to help you save money while giving you the features you need.