Broker use only. Refinancing faster

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1 Broker use only Refinancing faster

2 A faster, hassle-free settlement process for your clients.

3 FASTRefi Checklist 1. Loan statements to be returned to MSA with returned documents Ensure the client provides three months consecutive statements of account for the loan account to be refinanced. The latest transaction appearing on the most recent statement should not be older than 60 days as at the proposed drawdown date. Internet statements are accepted, if they re accompanied by at least one original statement. Note: If the statements on file don t meet the date requirements above, MSA will need to ask for further statements to meet FASTRefi payout requirements. 2. Linked debts Ensure the client discloses to us all debt that is secured by the title that will be used to secure the new FASTLend loan. 3. Additional documentation As part of the process, your client will need to sign some additional documentation on top of the normal loan contract, including: Helpful hints for brokers and customers 1. Please check with MSA that the OFI is a participating lender of FASTRefi prior to submitting. 2. No need to send a discharge form to outgoing financial institution MSA will forward this on your behalf. 3. Please ensure your clients don t transact on their redraw facility once documents have been signed and an up-to-date loan balance has been provided. 4. The actual payout figure (amount sent by EFT) will include a safety margin calculated by MSA. Borrower s irrevocable authority Payout figure advice Borrower s undertaking. Note: These documents will be sent to the client by MSA along with the mortgage documents. 4. Discharge authority Please ensure you don t fax the discharge authority to the outgoing lender as this will be done after settlement (if the discharge authority is sent, the file cannot proceed as a FASTRefi ). 5. Ensure the customer has sufficient funds The new loan amount will need to cover the amount owing to the OFI, plus a minimum safety margin of: One month s average current home loan repayment, plus a $500 buffer, plus the OFI s discharge fee (typically $350).

4 Refinancing faster A streamlined approach Take advantage of FASTRefi and avoid losing applications to other bank retention teams. The FASTRefi service makes refinancing faster and easier than ever saving your client time and increasing the efficiency of your business. What is FASTRefi? FASTRefi is First Title s unique refinancing process, which is managed by MSA National (MSA), FASTLend s legal settlement agent. It uses title insurance to facilitate the refinancing of a home loan in days, rather than weeks. Who is First Title? First Title has been providing title insurance for lenders in Australia since The title insurance policy that underpins the FASTRefi process covers the risks associated with funding a mortgage without simultaneous physical exchange of title deeds. For more information, visit firsttitle.com.au Streamlining the loan process FASTRefi enables an unattended refinance settlement to occur. The process circumvents retention units because settlement can proceed within days of documents being returned to the FASTRefi - accredited lender for certification. The FASTRefi service benefits lenders by helping improve conversion rates, reduce settlement costs, and provide improved and more streamlined mortgage processing. What s the process? Provided the loan qualifies, settlement now generally occurs inside days, not weeks, and there are no additional fees. FASTLend approves the application. MSA prepares the FASTRefi and loan documents. Your client signs all documents and records the loan balance/ payout figure. * MSA calculates the estimated payout figure, and MSA pays out the loans via EFT. The balance of funds is disbursed to your client * See checklist overleaf for details

5 Benefits of FASTRefi Benefits to your client Faster, hassle-free settlement at no additional cost Reduce contact with outgoing lender Faster access to any surplus funds. Benefits to your business Increase conversion rates More effectively manage client expectations Improved client experience leading to increased retention and referrals Gain a competitive advantage. Frequently asked questions Who qualifies? Your client will generally be eligible for FASTRefi when: The outgoing financial institution (OFI) is a bank, building society or credit union (with a BSB and account number) Mortgagors are individuals no company and trust borrowing There can be no changes to ownership The borrower has enough funds to repay all existing debts inclusive of a safety margin. What type of loan can be refinanced via FASTRefi and how to get started? Variable loans: The client needs to provide a current loan balance (obtained via telephone, internet or ATM) valid within 14 days of settlement. Fixed-rate loans: The client needs to obtain a payout figure in writing (on the OFI s letterhead) valid within seven days of settlement. Fixed-rate loans may be subject to significant break costs. The actual payout figure (amount sent by EFT) will include a safety margin calculated by MSA. What is the safety margin purpose and amount? The actual payout figure (amount sent by EFT) will include a safety margin calculated by MSA. The safety margin is: One month s average loan repayment plus existing lender s mortgage discharge fee (typically $350), plus $500. The purpose of the safety margin is to try to ensure the outgoing home loan accounts are paid out. The amount of the safety margin will vary depending on the size of the loan being repaid. Any surplus money will be returned to your client at the conclusion of the transaction, into your client's nominated account. (Please ensure you provide accurate account details and allow up to four weeks for receipt of funds, as this process is reliant on the OFI finalising and completing the discharge.) Remember to allow for the safety margin when calculating the new loan amount. It s important to note that the applied safety margin will not affect the borrower s loan-to-value ratio (only when the loan is deemed to qualify as a FASTRefi ). When will your client receive their money and what are the key timeframes? Balance of settlement funds: paid to the client on the settlement date. Settlement usually takes place within three days of the borrower signing and returning all required loan documents. Surplus funds paid to the OFI: any surplus will be credited back to the client directly by the OFI. Timeframes can vary from one lender to another, so this could take between one and four weeks after funding. Discharge fee: if the discharge fee isn t required by the OFI, this will be refunded to your client within three days of collecting title documents (approximately four to six weeks post-settlement). Stamp duty refund: any stamp duty refunds will be processed within approximately four to eight weeks post-settlement.

6 For more information, contact your FASTLend BDM. fastlend.com.au Advantedge Financial Services Pty Ltd (Advantedge) ACN Australian Credit Licence trades as FASTLend. Advantedge distributes and manages loans funded by AFSH Nominees Pty Ltd ACN Australian Credit Licence under the Advantedge Residential Loan Program. Each entity is a member of the National Australia Bank Group. National Australia Bank Limited does not guarantee the obligations of its subsidiaries. A