Looking to Refinance? Get In Touch with a Conveyancer

When it comes to the housing market, change is unavoidable. Just consider when you originally organised your mortgage, the interest rates were most applicable to the housing market at the time of purchase. And if we also consider the size and terms of your mortgage, it would’ve been best suited to your income and personal expenses at the time of purchase.

After all, you had just purchased a new home, you had to pay some set-up costs, and you were just getting comfortable with being on the property ladder for the first time. But when circumstances change, it can be wise to consider refinancing and whether you need to consult with a conveyancer if it’s something you undertake.

Mortgage refinancing, or in other words refinancing your home loan, is something that is typically done for a variety of reasons, however, what it boils down to is the homeowner’s desire to change their mortgage strategy by replacing their existing loan with a new loan, with the aim of repaying the former loan with the new one.

Some of the reasons for wanting to pivot or change mortgage strategies and seeking refinancing are as follows:

  • Your level of income has changed
  • Your expenses have changed, such as your children moving out
  • You might want to access cash for other pressing expenses
  • A windfall has come in, such as inheritance or a bonus
  • You want to consolidate your debts
  • You want to take advantage of changed interest rates and reduce the monthly repayment amount
  • You may also want to reduce risk by changing the type of mortgage loan that you have

In short, there are a myriad of reasons why you may want to refinance but if that is a decision you make, you need to notify your mortgage or property lawyer as a mortgage lawyer is required to ensure that your mortgage is changed as per the conditions in the property and conveyancing legislation that you affirmed in your purchase of the property.

If you’re at a point where your income has increased, you’ve been bequeathed some inheritance cash, your kids have left the nest, or your lender’s rates have changed and you’re now wanting to refinance your mortgage to get yourself a better deal; contact a property lawyer or conveyancing solicitor. They will sit down with you and work through the necessary legal steps to ensure that your refinancing is done properly. 

As mentioned, a mortgage lawyer is required for this financial transaction and most people will simply appoint their selected mortgage lawyer to work on their behalf in this situation. However, this process can also be conferred to a mortgage conveyancer, and a conveyancing lawyer can assist you in arranging your mortgage, and often with lower fees. The largest expense will typically be the application fee which is potentially payable to the lender. So, once you’ve chosen your lender and mutually agreed to the terms of the refinance, all that the refinance conveyancing process needs is for the lender to provide your mortgage conveyancer with certain loan security documents and instructions for preparing the loan. Your mortgage conveyancer will then complete the relevant documents, liaise with the lender, and register the discharge of the new mortgage. All you need to do is then sign!

Conveyancing 101: Do You Need Conveyancing Before an Auction?

The experience of buying a first, second, or even third home is an exciting yet stressful one as a property purchase is likely to be the biggest asset purchase most people will make in their lives. The initial joy of finding that dream family home or investment property is often followed by the stresses of having to comb through property legislation and conveyancing law. However, once you’ve found that ideal property, you should get in contact with a conveyancer or property lawyer to handle the legal processes of the property purchase.

Many people enter a property purchase unaware that the transaction is extremely complex and can be incredibly confusing even for the most seasoned property investors. If we take the auction process for example, as this is the most common method of property sale, your purchase of the property at the auction is an unconditional purchase.

Meaning that, if you’re lucky enough to be the highest bidder and your bid has met the reserve price, you’ve effectively made a cash offer. Once the auction is over, the sale that you’ve entered into is legally binding, meaning that you cannot attach further conditions or contract stipulations after the auctioneer’s hammer has fallen.

This means that before you step into the auction room for that property you’ve got your sights on, you need to do all the relevant research and due diligence that will pertain to your purchase. It is best to ensure that you have received finance approval from your chosen lender before you approach the real estate agent to discuss anything binding.

However, it can be helpful to discuss the difference between the asking price and the selling price for the property before you approach your lender. The most important research you ought to do on the property is getting a LIM report before the LIM auction agreement and seeking information on the property’s title before committing to a title agreement.

Completing this research and doing your due diligence is essential to ensuring that the property you’re wanting to purchase meets your necessary expectations. These steps and the actual process of legally transferring ownership of property from one party to another constitute what is branded, conveyancing.

Conveyancers are a type of legal specialists who handle this process and make sure it is all done smoothly. Conveyancing solicitors will assist you in undertaking the conveyancing process as they will do the following:

  • Check the property title
  • Check the particulars and conditions of the auction
  • Get a builder’s report
  • Organise pests and property inspection
  • Get a LIM report
  • Ensures the undertakings of each party are upheld and met

The conveyancing process is something that is often overlooked, and a conveyancing lawyer is a severely underrated asset to have when you’re undertaking a property purchase. Put simply, there is far too much at risk to be taking shortcuts as a buyer, as once you’ve entered an Agreement for Sale and Purchase of the property there is no going back or altering any conditions of the agreement, it’s therefore essential to get conveyancing assistance before committing pen to paper.

So, before you head to an auction room contact a conveyancing lawyer to assist you with pre-purchase conveyancing as this will safeguard your buyer’s rights and ensure an efficient and effective property transaction.