Mortgage discharge logistics

Discussion in 'Loans & Mortgage Brokers' started by Danielt25, 4th Mar, 2016.

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  1. Danielt25

    Danielt25 Well-Known Member

    Joined:
    7th Oct, 2015
    Posts:
    122
    Location:
    Brisbane Qld
    Hi I'm currently in process of refinancing a few loans over to CBA.
    I have received a discharge form from my existing lender. I haven't yet signed mortgage document from CBA.

    If I sign the discharge for my existing loans (to speed up refinance process) and for some reason don't end up refinancing / or there are delays with CBA - what happens to my existing loan I just signed discharge for? Does it sit in limbo? Can the discharge be cancelled? Or does it have an expiry on how long it needs to be actioned by the new financier?
     
    Danielt25, 4th Mar, 2016
    #1
  2. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
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    Location:
    Adelaide, SA
    The discharge can be cancelled - no issues at all.

    Send it through to your lender ASAP as lenders can take quite a while to process discharge requests.
     
    Corey Batt, 4th Mar, 2016
    #2
  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
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    Location:
    03 9877 3000
    The discharge kind of authority puts your existing lender on notice. If the new loan doesn't proceed, effectively nothing happens.

    We try to get these lodged as soon as the new loan is approved. Outgoing lenders reguarly cause unreasonable delays, getting this done early makes they whole process less painful.
     
    Peter_Tersteeg, 4th Mar, 2016
    #3