Sometimes the loan will discharge before expiry. If this is the case the borrower must pay interest for the period they have had the money, or a minimum amount of interest, whichever is greater. In addition, usually they must give three months notice of their intention to discharge or pay interest in lieu.

Three months from expiry Bransgroves Lawyers will email the private mortgage broker who organised the loan to remind them that the loan will soon expire. This usually prompts the broker to contact the borrower and we receive back some idea of what to expect. Usually it will be a refinance, sometimes the property would have been sold and sometimes a roll over will be sought.

Bransgroves communicates closely with the lender until settlement is booked in on PEXA. Interest is calculated on a daily basis and the payout figures are sent to the lender to confirm. The payout figure is banked directly from PEXA into the lender’s account.

Step 11 - Discharge