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So, you have decided to sell your home.

Oktay Sengoz

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25/10/2022

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1 min read

Sooner or later, you will be selling your property. Whether it’s your current home to upgrade/downgrade to another property or it’s your investment property.

Before selling your property, you should consider some things to ensure you can achieve what you want before accepting an offer on your property.

Here’s what to consider

Current mortgage

It's best to speak to your lender before you accept any offers on your property. The structure of your loan could make the difference of how much you need to pay back to the lender to release that property as security. If you have other properties with the same lender, the loans may be cross collateralised. You would rather know this before putting the property on the market, then at settlement when it might be too late.

Does your sale proceed cover your loan

If your sale price is less than the loan you owe to the bank, the bank will refuse to release the property as security. You should consider your payout costs, selling costs, i.e., agent costs and solicitors costs, and ensure your sale is going to cover the costs. Otherwise, you may be stuck at settlement and the purchasers could sue you for damages.

Contact your lender

Lenders are taking up to 4 weeks to process discharge requests. Your current lender needs to prepare the paperwork to pay out the loan and hand over the original title deeds at settlement. It is best to contact your lender sooner rather than later, so you don’t hold up settlement.

Talk to us today at Kredi to ensure you know everything you need to know about your loans before you decide to sell.

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