Conveyancing Process after Refinancing Your Home Loan

After navigating the comparison process and applying for the refinancing of your home loan, you will accept the loan with the bank and a law firm will be instructed to handle the conveyancing matters for the refinance transaction. We will look at the steps taken by the law firm in this article.

Process after Refinancing Your Housing Loan

1. 1. Select a law firm to complete the transaction and conveyancing matters. The law firm should be on the panel of the bank and is not black listed. We will recommend one of our network of law firms.
   2. Once you have appointed your law firm, they will take instruction from you to confirm the transaction of refinance. They will ask you whether the lock in period is over, any subsidy must be repaid to the current bank and the existing loan comes with a rate review date. You should also inform them of your wishes to use CPF for repayments.
   3. They will write to your current bank to serve notice that you wish to redeem the loan. It’s also important that the law firm is on the panel of the outgoing bank, otherwise another firm may have to be engaged to complete the transaction and additional fees may be incurred by you.
   4. The current bank will work out a preliminary loan redemption statement and send to your law firm. The statement will work out the monies to be settled.
   5. The law firm will then meet you to sign the required documents. Conveyancing legal fee might be collected from you. If the new bank is providing subsidy in the form of cash rebate, you are required to make payment to the law firm first. Otherwise, the legal fee subsidy will be settled by the new bank.
   6. On the day of completion which is typically 3 months after serving of notice described in step 3, the final redemption statement will be sent by the current bank.
   7. Your lawyers will then lodge the following on your property:
      • Total discharge of mortgage held by the existing bank
      • New mortgage in favour of the new bank taking over the home loan
   8. Upon completion, the new bank will send you a letter informing the repayment date of the new monthly instalments. This amount will differ from the previous estimations your mortgage broker may have shared, because the final loan amount would have changed in the past 3 months.
   9. To use CPF for repayment, you can then logon to the CPF website and set the amount to be used from your CPF.