Digital conveyancing means quicker refinancing, less paperwork, and zero disruption, explains PEXA's group executive customer & revenue
Australia’s $7.2 trillion-dollar residential property market has ‘gone digital’ and the banking industry has responded.
As a conduit between lenders and customers, mortgage brokers must remain at the forefront of this digital innovation as 98% of the Australian financial institution lending market are now ready and able to transact property online.
PEXA, or e-Conveyancing, eradicates the need for manual paper settlements, enabling real-time lodgement of Land Registry documents, online completion of settlement and fast access to proceeds of sale (often on the same day as settlement). PEXA also offers your customers a tracking service, called SettleMe, providing far greater transparency throughout the property settlement process. With one in every five property settlements experiencing some form of delay - typically due to manual error - PEXA provides your customers with greater certainty that their settlement will proceed, on schedule as planned.
It’s not just buyers and sellers that have experienced efficiency gains and improved transparency. Lenders have been critical in bringing the industry online, driving more than half-a-million digital transactions in a handful of years, equating to $60B+ in property exchanged online.
The major banks have led the charge to digital, launching internal campaigns to drive maximum volume down the electronic channel. In turn, this momentum generated mass-market support, with 124 financial institutions and 4500+ legal and conveyancing firms now able to transact property electronically through PEXA.
On 1 August 2017, the deadline for paperless refinancing kicked in, providing the Victorian and New South Wales markets with a more streamlined loan process. Early reports show that refinance times have been halved – or better – providing the Australian community with a much more efficient process for refinancing loans.
Government compliance dates for the switch to digital conveyancing will continue to evolve with property transfers the next frontier. In fact, by 2019, standalone property transactions, refinances and transfers will be required to be settled electronically in Victoria, New South Wales and Western Australia, with other states set to follow.
In short, in future every transaction you handle on behalf of a client will be completed online, removing the need for cheques and physical attendance at settlement. Property settlement appears to have finally found its way into the 21st Century.
Mike Cameron is group executive customer & revenue at PEXA. With more than 30 years’ experience in the finance industry, Mike has worked in a number of high profile roles at the National Australia Bank. At PEXA, Mike is charged with customer uptake and bringing the PEXA platform and products to market.