There are seven steps in the loan application process.

1. Complete an Application Form

The first step is your Breez application form. You can apply on-line or on paper—whatever you prefer.

Breez provides comprehensive, easy-to-follow guides both on-line and in our Loan Application Kit.

If you prefer to work on line, you can save your application and return to it as often as you require.

2. Personal Contact and Completion of Your Application

Regardless of how you apply you will be assigned a Breez Personal Loan Adviser who will make contact with you, get your application approval-ready, and move it through the approval process as smoothly as possible.

If you applied on line, we will review your application and e-mail you a Final Application Form with all of your information included. You will be able to check the information and make changes if required.  You should review this Final Application Form and, if the details are correct, print the signature page and fax or post it back to us. We need your signature to proceed with the application.

3. Conditional Approval

If your loan application passes our initial approval process it will be conditionally approved subject to verification, and any special conditions being met.

At this stage you will need to provide documentation to verify what you have told us in your application. Breez will email you a letter telling you what documentation you need to send, and any conditions that need to be met.

All parties to the loan need to sign the Conditional Approval letter and return it to us, together with the documentation requested and payment of our Valuation Fee by cheque, credit card or direct deposit.  This fee covers the cost of a valuer to appraise your property.

Conditional approval does not mean that your loan has been formally approved and you should not take any actions on the assumption that your application has been or will be formally approved.

4. Lenders’ Mortgage Insurance and Valuation

At this stage we finalise Lenders Mortgage Insurance if it is required.   Breez loans require Lenders Mortgage Insurance in cases where you purchase a property with a smaller deposit because it protects the lender against loss.

It is important to understand that Lenders Mortgage Insurance does not protect the borrower.   In the event of default you remain liable for any amount owing under the contract even if the mortgage insurer has paid that amount to the lender.  If you have 20% deposit plus your costs covered, you may not need lenders Mortgage Insurance.  We will advise you in the Conditional Approval letter if this insurance is required.

Lenders Mortgage Insurance is a one-off, up-front cost that you pay at or before settlement. This can be added to the loan amount if required. If you repay your loan within a two year period, you may be eligible for a partial refund of the lenders’ mortgage insurance charge.

After Lenders Mortgage Insurance is obtained (if it is required) we arrange a valuation of the security property or properties. We will engage an independent valuer to value the property. This may take up to five working days as valuers are in high demand.

5. Formal Approval

After we receive your 100 points of personal identification, Lenders Mortgage Insurance and valuation(s), we verify your employment and income details (if applicable).

If all is well, we formally approve your loan. Final loan documents are prepared and sent to you by post. These are

• The Loan Agreement; and
• Loan Mortgage

We also return any original documents that you have provided (we prefer not to receive original documentation).

6. Settlement

Settlement is where documents and payments are exchanged.

When your loan is formally approved, we notify your solicitor or current lender (if you are refinancing) to arrange settlement.

To ensure that there is no delay in settlement, documentation should be forwarded to Breez well before the settlement date.   If your loan is to purchase a property, the settlement date will usually be in the sales contract.

If you are refinancing, a Breez legal representative will contact your current lender to agree to a settlement date.   You will need to provide your current lender with a signed Discharge Authority form that can be obtained from your current lender.

• Payment of Fees
  At or before settlement, remaining fees and government charges must be paid. These include Lenders Mortgage Insurance (if applicable) and state government Mortgage Stamp Duty.
  Both Mortgage Stamp Duty and Lenders’ Mortgage Insurance may be added to your Breez loan as long as this does not increase the loan beyond the maximum loan amount. If you repay your loan within a one year period, you may be eligible for a partial refund of the lenders’ mortgage insurance charge.

• Property Insurance
  Before settlement security properties must be fully insured with the Lender’s interest noted. Where a strata title security is taken, the applicant is to take out Strata Title Mortgage Protection Insurance, noting us as mortgagee, sufficient to cover the loan principal.

7. Post-Settlement

Within approximately one- two weeks after settlement you will receive a letter confirming the funding and repayment arrangement. For refinancing borrowers, Breez will order a title search on your property when we receive your signed mortgage documents.   A Breez legal representative will also call to arrange a suitable date for settlement between you and your previous lender.   On settlement your other lender should send you a letter advising that your account has been closed.