MSA is one of the very few organisations authorised by First Title to conduct FASTRefi® settlements and have been managing FastRefi settlements since 2013.
MSA actively uses FASTRefi® as a tool to reduce up to 8 days in the refinance process. The saving comes in being able to repay an outgoing lender prior to settlement through a policy underwritten by First Title Australia.
Greater information regarding FASTRefi® product features is available at https://www.firsttitle.com.au/Landings/lenders
The eligible list of outgoing lenders that MSA is able to complete through FASTRefi® is contained the in the link below.
FASTRefi® is a unique refinance process that uses title insurance underwritten by First Title to allow lenders to payout a borrower’s loan account within days, as opposed to the standard refinance process which takes weeks to complete. This process allows MSA National to use the borrower’s current account balances and statements to calculate an estimated figure to payout the borrower’s existing loan.
- Faster settlement
- Surplus funds available to the borrower in less time
- Increase conversion rates reducing the risk of the existing lender’s retention team contacting the borrower
Each lender will have additional requirements based on their agreement with First Title, however the below are the standard requirements. Please contact your lender to confirm ALL qualification criteria for their program:
- Disclosure of ALL linked debts – including credit cards and guarantees. Where a loan has linked business loans, it will not qualify for a FASTRefi®.
- Bank statements for all accounts – this is required to assist with the estimated calculated payout and up to 6 months of statements may be required
- Current balance for all accounts – this is required to assist with the estimated calculated payout.
- Outgoing lender must be on First Title’s approved lenders listing - It the incoming lender’s discretion as to which lenders from the approved list may be used.
- All borrowers and mortgagors on the new loan must be the same as the existing loan.
- Continue paying the existing loan accounts and any linked accounts.
- Do not make any redraws or access the loan accounts or any linked accounts.
- Cancel any direct debits linked to the account to be paid.
- If a shortfall is expected, ensure the borrower deposits the extra funds in the loan accounts, at the time of signing loan documents.
The outgoing lender will return the funds to the borrower, once the account is closed off.
The buffer is additional funds calculated and added to the estimated payout to allow for additional repayments which may be deducted at the time of settlement. The buffer also includes an additional fee charged by the outgoing lender to release the title deed/s.
The buffer is calculated using one month’s average loan repayment + accrued interest + $500 + the outgoing lender’s discharge fee (approx. $350.00).
The buffer ensures the existing loan account is paid out in full, and no further funds are required from the borrower.
If the outgoing lender requires additional funds, MSA National will contact the borrower or the borrower’s broker to organise the additional funds to be provided. This may be due, but not limited to the following reasons:
- The borrower redrew from the loan following the payout
- The borrower stopped making repayments
- The borrower did not provide the most up to date balance
- Additional accounts were not disclosed