Settlement is a fairly complicated process that involves coordination between numerous parties such as: real estate agents, solicitors, mortgage brokers, lenders, and the land titles office. Your solicitor and mortgage broker can be invaluable in managing this process for you.
Settlement for a new purchase involves the transfer of money from the buyer to the seller and the transfer of the property title from the seller to the buyer. At the same time, various other costs are settled such as stamp duty, rates adjustments and solicitor’s fees.
Settlement for a refinance involves the old lender releasing their mortgage and receiving money to discharge the old loan, while the new lender takes out a new mortgage, creates a new loan and pays money out to old lender.
Once settlement has been completed, you will be advised by your solicitor or conveyancer. Within a few days, your lender will generally send a letter confirming the transaction details. It is important to follow up anything that you think may not be correct as soon as possible.
Your new loan account should be available within one day through the available access channels such as the internet, telephone, or ATMs, so it is a good idea to log on and make sure that everything is working appropriately.
From this point on, your new loan account is up and running. Remember to keep in touch with your mortgage broker if you have any questions or further requirements as they will be able to assist with any future finance needs.