Submitting a partial discharge

A partial discharge is a request to release a security property from a home loan facility, which is secured by multiple security properties, leaving at least one security property and the home loan facility open after settlement. A credit assessment is required to complete the partial discharge.

For example, a home loan facility (Facility A) is secured by two properties (Security 1 and Security 2):

• If your customer is selling Security 1 and they wish to keep Facility A open, a partial discharge would need to be completed
• After the partial discharge is completed, Facility A would remain open and be secured by Security 2
• Facility A’s limit may need to reduce using sale proceeds from the sale of Security 1.
  

Our Variations team can assist you with your customer’s partial discharge application. To start the process, you need to:

1. Send an email to our Variations team (mortgagevariations@macquarie.com) outlining the details of the request, including:
   • customer name
   • property to be sold
   • clear instructions on any accounts and account limits to be reduced.
2. Provide a Discharge Authority form completed and wet-signed by your customer
3. If selling, provide an indicative settlement statement from your customer’s conveyancer or solicitor.

If a valuation is required on the remaining security property, our team will arrange this and let you know if your customer is required to provide access to the property.

A partial discharge typically takes 28 days from application to settlement. This is comprised of 2-3 days to assess the application, if you’ve provided all the supporting documents initially. The remaining days are required to organise settlement of the property.

It’s critical that you start the process to partially discharge as soon as you're aware, to avoid any delays in settlement.

Please refer to our tips to improve discharge processing times.

Partial discharges typically take 28 days to complete. Prior to formal approval, updates will be provided by our teams as we work through the request.

Once approved, our team will send the partial discharge request to our panel solicitors to prepare settlement. You’ll need to check the status with them, including checking if the documents have been returned by your customer (e.g. Variation Acceptance form). Their contact details are in the formal approval letter and as the supporting broker, you can request a status update by calling their number.

All partial discharges are subject to credit approval. The documents required for assessment may differ depending on the scenario. To ensure a timely turnaround, provide your customer’s recent income verification documentation (e.g. payslips) when submitting the application.

There may be additional considerations and documents required for different scenarios.

Once the partial discharge has been completed, the LVR should be 80% or lower. There may be other security property considerations, which may require a lower LVR. If the LVR is more than 80%, typically an internal refinance would be required.

Valuations are required for the remaining security properties of the facility. If required, our team will order the valuations once you submit the request. You don’t need to order the valuations prior to submitting the request.

If your customer is subdividing and requires a security property to be released once the subdivision has been completed, the partial discharge can only be completed once the subdivision has been finalised.

You should submit both applications together. However, the partial discharge request can only be processed once our system has been updated with the new subdivided lots. 

Once formal approval has been received for the partial discharge, instructions will be sent to our solicitors. We’ll send the formal approval email to your customer, and you, if your details have been provided. The contact details for our solicitors are included within the formal approval email.

The solicitor will:

• prepare and send the documents to your customer via DocuSign
• arrange settlement with our panel solicitors.

Your customer will:

• receive a request to complete variation acceptance via DocuSign
• sign and return the documents
• arrange for their legal representative to book the settlement for the partial discharge.

You need to:

• ensure your customer has signed and returned the DocuSign documents
• ensure your customer’s legal representative has contacted our panel solicitor to book the settlement for the partial discharge.