Last Updated: 2nd May, 2024

We at Home Loan Experts have a dedicated post-settlement team, providing a unique service compared to most lenders. Offering our assistance and monitoring your home loan regularly throughout its lifetime, our aim is to be your broker for life. Below, we have answered every possible home loan FAQ that you might come across post-settlement.

What Is Post-Settlement?

Post-settlement refers to the period after the home loan has been approved and the borrower takes ownership of the property. During post-settlement, borrowers must ensure they’re always on top of their repayments.

Can the bank reduce my interest rate?

Yes, the bank can reduce your interest rate during or post-settlement. But, the terms for the discount vary depending on the product and type of interest on your home loan. For a variable rate home loan product, your broker can negotiate with the bank for an additional discount. Whereas, for a fixed rate, lenders will not review your interest rate without having you incur a break cost.

Is it possible to alter my repayment amount?

You cannot decrease the repayment amount going below the minimum requirement of a lender. However, you can set a repayment amount that is higher than required. If you make additional repayments, they will accumulate as redraw balance. Maintaining a redraw balance will save you the otherwise payable interest, accelerating your repayment process.

Can I extend my interest-only term?

This home loan FAQ is one that our brokers get almost all the time. The answer to this differs on a case by case basis. The lender’s policy and how they assess your loan are the two determining factors. It is where you will need the assistance of an expert the most. Hence, you should reach out to your broker for assistance. You can call us on 1300 889 743 for our assistance even post-settlement.

How to convert an investment home loan to owner-occupied?

For converting your investment home loan to owner-occupied, you must first update your residential address to align with that property. Then, you can submit your lender a signed form to process the change.   Note: Some lenders also require a utility bill (dated within three months) or driver license. It serves as proof of you occupying/moving into the property.  

How do I change my repayment frequency or direct debit account?

The two most feasible options to change the repayment frequency or direct debit account are:
  • Going through the internet banking system of your lender
  • Filling a form

Do I get to retain my redraw and offset facilities after converting to a fixed rate home loan?

Generally, you cannot withdraw the redraw balance accumulated before converting your loan into a fixed rate. If you want to use those funds before expiry, it is advisable to withdraw the redraw balance before fixing your loan. As for the offset account, normally, you do not get offset facilities during the fixed term. However, a few lenders do allow partial and full offset facilities.

My guarantors are looking to sell their property kept as my home loan security. Are there any options to release their property?

Your current LVR (Loan to Value Ratio) status indicates whether or not you can release the guarantor‘s property. If your current LVR has become 80% or below, your mortgage broker can help you release the guarantor’s property. If the LVR is still above 80%, we can look into some options that might work for you.

Can I increase my home loan for some renovation purposes?

Provided the below-mentioned factors favour your case, you can increase your home loan for renovation. For our clients, our dedicated customer relationship team can look into this and advise you accordingly.

Offset or redraw account? Where shall I keep my funds?

An identical interest saving can be made from both offset and redraw balances. Nevertheless, it is easier to withdraw funds from an offset account than a redraw account. You have comparatively less control over funds in the redraw account. And, some lenders even charge withdrawal fees while redrawing funds. However, a benefit to a redraw account is that you might get tax benefits. Also, you can make lump-sum payments only by capitalizing the funds from redraw. Thus, it would help if you weighed out your priorities, seeking customer support from your broker or our dedicated post-settlement team.

If I have my credit card obtained from my mortgage lender bank, will my annual credit card fee be waived?

If you add a package deal to your home loan or already have one, you get your annual account fee waived on one eligible credit card.

Need assistance post-settlement?

Want us to elaborate further on the home loan FAQs answered above? Want to reach out to our customer relationship team for post-settlement assistance of any sort? Please give us a call on 1300 889 743 or fill in our online assessment form today to discuss your needs.