Application Process FAQ
THE RATE REDUCER APPLICATION PROCESS
These days, reducing your home loan is no easy feat. First, you need to save for a deposit, get the right loan and relentlessly pay it off. The Rate Reducer is here to help you reduce your investment debt so you can move from being a ‘home dreamer’ to ‘home owner’ and enjoy the rewards of paying off your mortgages faster.
Step 1: Fill in the no obligation Rate Reducer application form for lodgement & initial assessment
Once you have submitted the application form and given us all of the supporting information we need (such as payslips and loan statements) one of our loan consultants will call you to confirm your details and check your serviceability. If you service and confirm with us to go ahead, then we will apply for a credit check.
Depending on your situation there could be no bank transfer fees, we will talk through this over the phone.
Step 2: Loan approval – approximately 4 weeks
Once you service and confirm with us to go ahead ,we prepare your application and submit it for assessment. Once the application has been received by our Credit Team, a Senior Credit Manager will check through your information and confirm that it is ok to package your application and send it to the lender for approval.
Once the formal approval has been received we will notify you. Your loan documents will be prepared within 3 days from formal approval, at which point your loan consultant will contact you to arrange a time to sign them with you. Once they are signed and returned, along with any outstanding documents.
Your new loan is settled and you’re now on the path to financial freedom!
FAQ
What happens to my old loans?
After we’ve approved your credit and call to offer you the best possible rate we cancel your existing loan and roll you onto a new loan through us.
Does the application form effect my credit rating?
No, the initial application form is no obligation and does not get marked onto your credit rating. Once you submit the initial application we will call you to discuss your eligibility to go ahead.
What about exit fees, break fees and start-up?
All variable mortgages advanced on or after the 1st of July 2011 have no early repayment penalties or exit fees. However, fixed rate break costs and discharge fees still apply.
If your home loan is fixed or if it was setup before July 2011 then you may still have significant exit fees.
Every home loan has a small discharge fee (typically $350 per property) which covers the cost of the lender removing the mortgage that has been registered on the title of your property.
This fee is reasonable as it is an actual cost incurred by the bank and, consequently, discharge fees were not banned by the government.
