In the previous article I explained some of the benefits of switching. Let’s now explain the bond switching process.
The process of switching home loans involves cancelling your existing bond and registering a new bond at another bank. For your application to be considered you’ll need a clear credit record and all your bond repayments must be up to date.
The new bond will take about 3 months to register since you’d have to give your current bank at least 90 days notice before settling the home loan. This is to avoid any penalty fees, which normally amounts to three months interest on your outstanding home loan amount.
When deciding to switch your existing home loan it is key to consultant your bond originator first. Often you’ll be able to qualify for a reduction in costs and you may also be offered a cash back bonus.
To initiate the process your bond originator will compile all the necessary documents and submit the application to the new bank on your behalf. Once your application is received the bank will perform a credit check and a valuation on your property before offering you a competitive interest rate.
The required documents for switching will vary but it will be used by the bank to determine if you’re still able to afford the mortgage. As from June 2, 2007 under the New Credit Act your total disposable income will be used to determine the bond amount you’ll qualify for – click here for a PRE APPROVAL.
Cash Back Offer:
CLICK HERE – Speak to one of your bond consultant now about switching your home loan and ask for a your Home Loan Switching Cash Bank Bonus. And, by using our bond attorneys you’ll qualify for a 100% discount on your bond costs.