A partial discharge takes place when a client seeks to sell a property. The property is one among several held on the same title and loan. One goal is to sell the property to earn income that pays back a large portion of the loan. Other times it’s sold to provide collateral against the loan. Ultimately, the client is positioning themselves against taking on more debt.
To fill a partial discharge, the client fills out the appropriate form. It’s often available online. The broker can also request it on behalf of their client from the lender.
The application allows the lender to explore the reason for the request. Some clients are seeking to refinance their loans. In this case, Mortgage Street works with the client’s broker to find the best solution. The discharge might be the best solution. A refinance without the discharge suits others.
Turnaround time on a partial discharge request takes between two to four weeks. If the client wants the discharge, it’s in their best interest to remain abreast of the application’s movement. The longer the request takes, the more interest accrues in the meantime.
If the discharge is intended to fund a new home loan, submit both applications at the same time. This signals to the lender that you’re prepared to move with the request as quickly as possible. Investors enjoy real estate because it helps them leverage their finances. A partial discharge helps fund a new venture.
Partial Discharge Conclusion
A partial discharge is possible for business clients. Brokers interested in finding out more about the steps involved can contact our Mortgage Street team. Our loan specialists are available to go over the application process and explore your client’s current financial situation. There may be a better solution for funding a new property or maintaining the finances of the existing properties.