A settlement shortfall occurs when the total loan amount approved with Unloan, is insufficient to cover the payout figure quoted by your existing lender. The payout figure quoted by your existing lender will include their fees, charges and accrued interest.

If you have transferred more than the required settlement shortfall amount, the excess funds will be available in your Unloan redraw facility.

To prevent a shortfall at settlement, ensure you apply for a loan amount that reflects your financial needs accurately.

If you have funds in your redraw facility, decide whether to retain them or apply them towards your loan balance before refinancing. To maintain the approved loan balance with Unloan, please avoid withdrawing from your redraw facility prior to settlement. Additionally, if a loan repayment is due soon after your settlement date, please inform your dedicated Settlement Specialist to avoid any potential shortfall by adjusting the settlement schedule accordingly.

Learn more about our settlement process, here.