UNDERSTANDING SETTLEMENT
During settlement, there’s a lot to keep on top of. A good mortgage broker will keep chasing all the parties concerned – especially the lenders. Your mortgage broker should have an excellent relationship with the lenders on their panel and will spend a lot of time on the phone on your behalf to keep things moving.
So who does what before settlement?
- Preparing mortgage documents – the lender
- Executing mortgage documents and returning them to the lender – completed by you and your mortgage broker
- Title and other searches– completed by the lender’s solicitor/settlement agent and your solicitor/conveyancer
- Stamp Duty concessions/exemptions – organised by you and your solicitor/conveyancer
- Stamp Duty payment – organised by you and your solicitor/conveyancer
- First Home Owner Grant receipt – organised by the lender’s solicitor/settlement agent
Now that I’ve settled, what should I expect?
Once again, this is where having a good mortgage broker is your biggest advantage. As well as dealing with all the post settlement queries you may have, your broker should be in a position to guide you through the fundamentals of your home loan. By doing so they are ensuring you completely understand your repayment schedule, what your interest rate is and how to best use the home loan features.
Your broker should also have an aftercare program in place with at least one touch point annually. Expect a phone call around the anniversary of your loan settlement to complete an annual mortgage review. A annual mortgage review will show if there has been capital growth in your property and determine if you have grown enough equity to invest in more real estate using cash out or equity release options. It will also tell the broker if your mortgage is still competitive and doing what they set out for it to do.
If your home or investment loan hasn’t been reviewed for some time, now is the perfect time to request a home loan health check to ensure your longer term financial goals are on track. For an honest and unbiased opinion, talk to Mitesh at Think & Grow Finance today on 03 8390 5855 or email mitesh@thinkandgrowfinance.com.au