Can You Change Your Loan Once it’s Been Accepted?
Yes, you can change the terms of your home loan once it has been accepted. If you have successfully renegotiated your mortgage terms with a mortgage broker, or requested a mortgage rate review and wish to alter your terms to match the benefit results, you are allowed to do so. The administrative cost for altering an existing home loan or mortgage is $100.
Altering the terms of an existing loan is called a loan amendment. Loan amendments are permanent alterations to an existing loan agreement that has the potential to make repayments cheaper for the borrower. A loan amendment can also make alterations to the terms of an existing loan to achieve the following results:
- A potentially decreased loan principal amount (this is a rare result)
- The conversion of a loan type from a variable interest rate to a fixed interest rate
- An extension of the loan terms
- A lowered loan interest rate
To successfully complete the loan amendment process, your lender may ask for certain documents and information, including a letter of hardship, tax returns, financial statements, and more. Individuals looking to alter their loans can reach out to their mortgage broker or lending special specialist to learn more about any specific requirements they may have.
If you are a Mortgage House client and interested in learning more about altering the terms of your current loan, whether that be a home loan or car loan, reach out to your lending team for more information.