As we are all aware technology is changing the way many business and governments function. The land titles offices, Banks (credit instituions) and legal representatives are all backing a move to the paperless system known as PEXA in Australia. Now we won’t bore you with the details, just know that this should reduce the cost to consumers as less human intervention will be required and it should speed up the process for refinancing, changing title registers and purchasing property. Which is good news for the mortgage industry and for the participants in the transactions.
South Australia is the first state where conveyancers, solicitors, and lenders will be able to completely digitally exchange property with the necessary e-Conveyancing legislation in place as of 4 July 2016. We know that other states are using this system for some types of transactions and are looking to follow South Australias lead.
Dependent on lender, other streamlined processes for purchasing and refinancing mortgages exist. The most notable is Automated (AVM) or desktop valuations which use averages and historical data to determine the value of a property. This measn no trying to find a time to let the valuer in and then wait
2 days for them to produce a report. Normally the process takes 5 min or less to produce the report and if it is not satisfactory then we go back to the old method. A client with an investment property took
3 weeks to get access to the tenanted property recently. Had the bank used these valuations the transaction would have almost been complete.
Another is Rapid Refinance, this is where the incoming bank takes out title insurance and effectively paysout your existing mortgage without telling the current lender. Lenders like to take up to 21 days (or more with some lenders) to release security. They do this to maximise the amount of interest you pay them. With rapid refinance you can settle just a few days after signing mortgage documents, potenetially saving weeks.
Let us know if you would like to know more about ways to speed up your refinace.