Finance Broker Australia Home Loan Broker

First Title have introduced a new process called FASTRefi®, which enables refinancing to occur within days of a client signing the loan documents.

FASTRefI® enables the new loan with your lender to be drawn down without the need to book in a settlement date with the Outgoing Financial Institution (OFI).

The FASTRefi® Concept:

How does it work?

• Title Insurance: Risks of transaction covered by First Title’s Residential Loan Protection Policy (RLPP)
• Mortgage Processing: All processing is outsourced to First Title or conducted internally by the lender
• Qualification Criteria: Assessed during loan application/approval.
• Documentation: Disclosure and key acknowledgements/authorisations are incorporated into the Lender’s loan
  document pack.
• Payout Figures: Loan balances/payout figures obtained by the borrower, who also authorise the incoming lender to add a nominal buffer to ensure debt is fully repaid.
• Settlement: No physical settlement occurs. Settlement completed electronically via EFT with funds transferred directly to OFI loan account.
• Document Recovery: Security documents recovered from the OFI post funding

Why FASTRefi®?

• Faster settlements mean you get any surplus money and new loan product quicker
• Reduces the level of contact you have with the OFI
• Customer can access surplus funds weeks faster than traditional refinance process
• We work out payout figure and associated fees for the borrowers
• No extra fee to the borrower

How are payout figures calculated?
All payout figures are calculated based on information provided directly by the client.
● Standard Variable rate loans and Line of Credit Accounts - the client must provide a current loan balance (obtained via telephone, internet or ATM).
● Fixed Rate loans, the client must obtain a payout figure in writing (on the OFIs letter head). The actual payout figure (amount sent by EFT) will include a buffer calculated by First Title.

What is the buffer?
The purpose of the buffer is to ensure the outgoing home loan accounts are put into credit.
The amount of the buffer will vary depending on the size of the loan being repaid.
The buffer is = one months average loan repayment + $500.00. A standard discharge fee of $350.00 will also be withheld pending recovery of the title documents from the OFI.
Any surplus funds will be sent back to the client – directly from the OFI.

When will the borrower receive their money? What are the key timeframes?
Balance of Settlement funds: paid to the client on the settlement date. Settlement usually takes place within 3 days of the Borrower signing and returning all required loan documents.
Surplus funds paid to OFI: any surplus will be credited back to the client directly by the OFI. While timeframes can vary from one Lender to another, this usually happens within the first week after funding.
Discharge fee: If the discharge fee is not required by the OFI, this will be refunded to the borrower within 3 days of collecting title documents (usually within 4-6 weeks post-settlement).
Stamp Duty refund: any stamp duty refunds will be processed within approx 4-8 weeks post-settlement

How much does a FASTRefi® settlement cost?
There are no extra charge for the benefit of FASTRefi® !

How does Title Insurance facilitate FASTRefi®?
First Title offers Title Insurance as part of this transaction. This provides protection for the lender and their client between settlement and when the mortgage is registered in first priority for the incoming lender. The insurance policy covers the incoming lender for the Title during this time, meaning that the loan can proceed as a FASTRefi

Contact Ability Finance brokers on 02 800024035 for further information.