Everything You Need to Know About Shortfalls

What is a settlement shortfall?

A shortfall in a refinance settlement process occurs when the approved loan amount is less than the payout figure from the current lender, which may include additional third-party fees such as lodgement fees and government fees.

During the settlement process, your legal and financial representatives will be busy arranging loan documents. Since problems can lead to costly delays, you want the settlement to go as smoothly as possible.

How will I be notified if there is a shortfall?

If there is a shortfall, we will contact you via email and a phone call on the morning of the settlement day.

What should I do if the payout figure appears incorrect?

The payout figure is calculated using the information from your current lender which includes any interest accrued since your last repayment and any fees charged.  

If you find discrepancies in this figure, we recommend contacting your current lender to resolve this. After the matter is resolved, we can request an updated payout figure on your behalf.

What do I need to do when there’s a shortfall?

If the shortfall is below $10,000:

We will ask you to transfer the shortfall to a suspense account or temporary shortfall account by noon (AEST) to ensure we can receive the funds quickly and for the settlement to proceed as scheduled.

If the shortfall is above $10,000:

Our team will provide instructions on how to resolve the shortfall.

What happens if I don’t transfer the shortfall amount before noon on the day of notification?

If we do not receive the shortfall amount by noon (AEST) on the day we notify you, the settlement will be postponed and rescheduled for the earliest available settlement date, subject to the availability of your current lender. Please note that this may result in adjustments to the payout figure as interest is calculated daily.

How can I provide payment confirmation?

Some banking apps feature a ‘Share’ function that allows you to send us a confirmation to [email protected]. Alternatively, you can capture a screenshot of the payment confirmation and include it as an attachment in an email to us.  

If you have any further questions or concerns, please don't hesitate to contact us via live chat or email us at [email protected].

‍

This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000. 

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.