FAST Refi is a unique process that reduces the settlement timeframe for a refinance from as much as six weeks to only days after receipt of all necessary loan offer documents.
It allows borrowers to refinance their loan to a new lender, without giving the existing bank a chance to slow the process down by insisting on a certain amount of time elapsing before they are ready to book it in. The new lender doesn’t need to approach them prior to advancing the funds; they simply deposit the funds directly into the old loan account and then produce the signed discharge to get the title released.
This means that once your loan has been approved and the loan offer documents signed and returned, your refinance is completed within just a few days.
How does this affect you?
You will be required to provide some additional information to ensure the matter proceeds as a FAST Refi, and as a result the turnaround time of your settlement will be reduced dramatically! You will be able to reap the benefits of your new loan sooner!
What is required from you?
• Provide an accurate loan balance or payout figures when you sign your loan offer documentation
• Disclose all linked debts and obligations
• Continue making your scheduled loan repayments until we advise you that settlement has been effected;
• Not redraw on your existing home loan or line of credit after you have provided the payout figure above
• Cancel all direct debit authorities on the loan
• Assist when required to retrieve security documents from the outgoing lender after settlement
What is a Buffer?
As FAST Refi doesn’t require anyone to attend settlement with the outgoing lender, we need to ensure that we send enough funds to pay out the entire loan.
A buffer is an amount that we add to the payout figure that you provide to us. This helps to ensure we pay out the full loan amount. This amount is part of your loan amount with your new lender.
Any surplus funds will automatically be returned to you by the outgoing lender.
What is a Shortfall of Funds?
Normally the buffer amount is adequate to pay out the outgoing lender; however in some instances there may still be an amount outstanding. This is referred to as a shortfall. Shortfalls usually occur because you may have forgotten to disclose ALL debts linked to the security property, redrawn funds or have not cancelled direct debits processed on your account. You remain liable to pay any shortfall, should this situation occur.