Discharging Your Mortgage With Westpac: What You Need To Know

If you're looking to discharge your mortgage with Westpac, there are a few steps you need to take. First, you'll need to fill out a Westpac Discharge Authority Form, which can be done online or manually. This form authorises Westpac to release the mortgage funds to the relevant parties and ensures a smooth and secure transfer. You'll need to provide personal details, such as your full name, address, and account information, as well as details of the mortgage you wish to discharge, including the property address and loan account number. You'll also need to specify the discharge amount, which includes any remaining loan balance, interest, and fees. Once the form is submitted, along with the mortgage discharge fee, you should receive your title within 21 to 28 days.

Filling out the Westpac discharge authority form

Specify the discharge amount, which includes the remaining loan balance, interest, and any additional fees or charges. Indicate your preferred method of receiving the discharge documents, such as mail or email. Sign and date the discharge authority form. Ensure you have included any supporting documentation, such as proof of identification.

The Westpac discharge authority form can be filled out and submitted online through your account. Alternatively, you can download, complete, and manually submit the form. After submitting the form, you will need to pay the mortgage discharge fee for administration costs and paperwork. You should receive your title within 21 to 28 days, although it may take longer if you are refinancing or requesting a partial discharge.

The Westpac discharge authority form is used to authorise Westpac to release funds from a mortgage account. It is typically used when a borrower is refinancing, selling, or transferring ownership of a property. The form ensures the smooth and secure completion of the transfer by authorising Westpac to release the mortgage funds to the relevant parties.

Paying off the loan balance

Paying off your Westpac home loan in full is a significant milestone. If you're selling your property, you can choose to pay out and close your home loan, or if you're buying another property, you may want to consider loan portability and keep your existing loan.

To pay off the loan balance, you'll need to complete the Property and Security Request Form, which can be found on the Westpac website. This form will guide you through the process, including any associated costs, so you can discharge your home loan.

• Download the form: Visit the Westpac website and download the Property and Security Request Form, also known as the Westpac Discharge Authority Form.
• Fill in your personal details: Provide accurate information, including your full name, address, contact information, and customer ID or account number.
• Provide mortgage details: Specify the property address, loan account number, and any other relevant information about the mortgage you wish to discharge.
• Specify the discharge amount: Calculate and include any remaining loan balance, interest, and any additional fees or charges that you need to pay.
• Choose your preferred method of receiving discharge documents: Indicate whether you prefer to receive the documents through mail or email.
• Sign and date the form: Ensure that you sign and date the discharge authority form.
• Include supporting documentation: Gather and attach any supporting documents that may be required, such as proof of identification or other requested documents.
• Submit the form: Submit the completed form to Westpac, either online or through other specified methods.
• Pay the mortgage discharge fee: As soon as Westpac receives your form and the mortgage discharge fee for administration costs and paperwork, they will process your request.
• Receive your title: Typically, within 21 to 28 days of submitting all the required documentation and fees, you should receive your title. However, it may take longer if you are refinancing or requesting a partial discharge.

Remember, if you're considering moving your loan to another lender, Westpac may be open to discussing options to retain your business.

Removing a guarantor

To remove a guarantor from your Westpac mortgage, you must first pay out the loan balance. You should then complete the Property and Security Request Form, following the instructions provided, to discharge your home loan. The exact process of removing a guarantor from a mortgage varies from bank to bank, but the following steps are generally recommended:

• Contact your mortgage broker to review your financial situation.
• If you have an 80% LVR loan, you can submit a partial release. If you have a 90% LVR loan, you will need to complete an internal refinance and the loan will be subject to lenders' mortgage insurance approval.
• Banks will charge some administrative and possibly government fees to remove the guarantor. These are usually under $500, provided you aren't paying lenders' mortgage insurance.
• Your loan repayments need to be up to date for the last six months.
• The best time to remove a guarantor is when you owe under 80% of your property's value, as you can avoid Lenders' Mortgage Insurance fees and qualify for better interest rate discounts.

Closing a linked term deposit

If you're selling your property, you can choose to pay out and close your home loan, or, if you're buying another property, you may want to consider loan portability and keeping it. Westpac offers a guide on how to do both.

If you're selling, you'll need to submit a home loan release form (or discharge authority form) and share it with your conveyancer/solicitor a few weeks before settlement. If your outstanding loan is greater than the sale price, you'll need to cover the 'negative equity' gap before settlement. You can do this by dipping into savings, selling assets, or exploring other ways to cover the shortfall.

If you're paying off your loan in full, you can also close a linked term deposit. If your Business Term Deposit is held as security against a loan, it can only be closed once security is no longer required. If you wish to access funds prior to maturity, you must provide at least 31 days' notice (except in cases of hardship) and early withdrawal may reduce returns.

You can manage your term deposit online or in the Westpac app, where you can set up renewal or withdrawal instructions in advance, then update them whenever you want. You have 6 business days (the Variation Period) to provide your instructions. If none are received, your Term Deposit will be renewed for another term of the same length, which may be at a lower interest rate.

You can also open a new Term Deposit or renew a maturing one online if you're an existing customer with a Westpac Choice everyday account.

Changing the property held as security

If you're looking to change the property held as security on your Westpac mortgage, there are a few things you need to do. First, you'll need to submit a request for a change of security. This can be done by filling out a Property and Security Form, which can be found on the Westpac website. On this form, you will be required to provide personal information, as well as information about your current loan and the changes you wish to make.

Once you've submitted the form, a Westpac representative will be in touch to guide you through the next steps and any associated costs. They will also discuss your options for keeping your home loan with Westpac, including the possibility of loan portability, which allows you to substitute the property held as security without the need for a new loan application.

If you're selling your current property and buying a new one, a short-term bridging loan of up to 12 months can help you secure your new home without having to sell your current one first. This can be a convenient option if you don't want to rent or risk missing out on your dream home.

Alternatively, if you can afford to borrow more, you may be able to borrow against the equity in your current home to buy a new property or renovate your current one. Westpac's equity calculator can help you explore this option. Remember, it's important to consider your financial circumstances and seek professional advice if needed.

Frequently asked questions