Just a quick post whilst the little-un's asleep
Can anyone tell me (those loan sharks out there) how much notice I have to give my bank regarding selling one of my properties? When do you usually tell them? Between Exchange Of Contracts and Settlement?
I have rung the bank today to change my 2 loans over to a package that has an offset facility. I have to do it now while I still have two properties/loans as you have to have $250,000+ mortgaged with the bank to qualify for that offset package.
As soon as the property is sold I will pay out the associated loan, and be left with the other loan which is $230,000 ($20,000 short of $250,000, which is why I have to change them over now).
The bank's rep said it will take a few weeks to change them over…. I am just worried about the timing of changing the loans over and informing the bank that I'm selling one of the properties…. does that make sense?
Thanks for any help!
When I sold 1 house about 9 weeks ago, I rang the bank as soon as contracts were signed as they had to organise a partial discharge. I then had to put my request in writing and fax it to them. Was lucky I did too as it was all only done just in time, mind you it was a 30 day settlement so quite short as is the way in QLD!
Just wondering if you really need an 'offset' facility. Many brokers (and others who like to 'sound authoritive') like to toss this expression around to sound important, but really it is only in a very few (which I have done/organised too) situations where it is really beneficial. Just wondering if, depending on your stragey, and if you plan to buy more property, whether or not it would be easier for you to avoid restructuring as part of a 'package', and perhaps grab yourself a basic cheapy no frills loan and avoid all the hassle, stress, and annual fees. Other than that, the bank should fit in with you, after all is'nt that what they are there for????(Especially if you are not refinancing, they should be more than happy to oblige – anyway, all the best)
Thanks guys,
I will rang the Bank today and inform them that I am selling one of my houses and see if they can change the loans over in time, *please* *please *please*. Had a thought last night though…. if they can't be changed over in time I might be able to borrow $20,000 on the remaining $230,000 to bring it up to $250,000 and qualify for the offset loan. We will probably spend another $10,000-$20,000 on our house renovations anyways…
I think it is worthwhile having a loan with an offset facility as the profits from my IP sale will sit in there and offset our PPOR loan. Our PPOR will probably be an IP one day so I will get the tax advantages later down the track, doing it this way.
Also wondered last night…. what's to stop someone refinancing/borrowing more money on their loan, only to put it in a (linked) offset account… i.e. to increase the loan debt…? We would probably put the $20,000 into the offset account and then use it as we need to… but it just got me wondering. I suppose you could try it but then if you ever got audited by the tax man…..
Cheers….
I think it is worthwhile having a loan with an offset facility as the profits from my IP sale will sit in there and offset our PPOR loan. Our PPOR will probably be an IP one day so I will get the tax advantages later down the track, doing it this way.
yep pasanbec – that is one of the 'few situations' I was referring to. All the best with your plans.
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