Overview

When an Applicant has an existing Mortgage Liability and is applying to have it paid out (cleared), it is called a Refinance.  

It may be a full or a partial refinance.
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Follow these instructions to enter it correctly in Loanapp and ensure Serviceability and LVR is correct.

If you are doing a straight refinance with no change in the security property, you will need to enter that Existing Property and ensure that you are using it as security. 

You will need to be on the Current Situation tab, Existing Properties menu icon.

Once you enter the property, ensure that 'To Be Used as Security' = Yes

To enter an Existing Mortgage Liability, click on the Mortgage Liabilities menu icon. 

Select either a Term Loan or a secured Line of Credit.

Enter the information as required. 

The key field on this page is 'Clearing from this Loan'.

For a Full refinance, Clearing from this Loan = 'Yes'

The Refinance Amount field will auto populate with the full outstanding balance that you have already entered and you will not be able to change it. You will required to enter any Refinance Costs.

In Serviceability, this loan will not be included in Expenses.

For a Partial refinance, ensure 'Clearing from this Loan' = 'Partial'

The Refinance Amount is now editable. You can advise the New Limit and Repayments.

In Serviceability, only the New Repayments on the New Limit will be included in Expenses.

Select a New Loan that will be refinancing the existing mortgage liability.

Click on the New Requirements tab, and then the New Loans menu icon.

NB: depending on your application, you may or may not be entering a New Purchase property. For this example, we are assuming a straight refinance with no additional purchase so the New Purchase screens will be left blank.

Each Lender will have a unique list of loan products. You may create one or more accounts and complete the necessary information on the Details page.

NB: Existing mortgages must be flagged as 'Clearing from this Loan' if they are being refinanced.

Otherwise: