Property buyers often choose to refinance an existing mortgage when they purchase a new property, taking advantage of prevailing interest rates and the simplicity of a single mortgage. This can be confusing for practitioners transacting the transfer, when they note an additional land title and associated funds appearing in the workspace – especially if they have not been told this is happening.
We understand that it would be easier from the purchaser’s representative point of view to insist on a separate workspace for the additional property mortgage, and link to the transfer. However, Banks are inclined to hold a single mortgage over both securities. While the additional security in the workspace can be a confusing experience for practitioners, the buyer benefits from:
A single mortgage
Less fees through one set of
Land Registry Lodgement fees
PEXA transaction fees
The best way for everyone to get on the same page is for all parties in the transaction to communicate the scenario as soon as possible and certainly at least 5 days out from settlement. A workspace conversation from the Bank to relevant parties during the early workspace preparation stages is best.
As always, please reach out to your PEXA contact, respond here or contact PEXA Support for assistance.