Hi all
Recently trying to refinance IP @ 80% via a mortgage broker.
The broker recommended ANZ bank. 3 yr fixed interest only. @ 6.55%
I asked the broker why i had to open an seperate account with ANZ. He said you dont have to have any funds in there they just want you to have an account with them.Hiccup! bank says because i/o i have to have the money coming from an account with the ANZ.
So now all the paperwork is signed and the bank won’t finalise the refinance unless money to pay the interest on the loan comes from my new ANZ account and not from elsewhere.
My broker said he wasn’t made aware of this and it was new to him.
Can the bank force the issue if i decide to go elsewhere as it seems messy to have to transfer money to different accounts to get to the interest owing one.
I signed on incorrect information from the broker.
regards
alfHi Alf
I haven’t heard of that one either and it sounds strange to me. If you are part of the professional package, then an account needs to be open, but not otherwise. However they do give a $100 discount off the app fee if you have payments direct debted from an ANZ.
If they keep arsing you around, just open an account (it should be fee free if you have a loan) and set it up, and hten close it once it ssttles.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Originally posted by Terryw:If they keep arsing you around, just open an account (it should be fee free if you have a loan) and set it up, and hten close it once it ssttles.
HI alf,
Did exactly this with CBA/Colonial – opened the required savings account and closed it imediately after the loan had been finalised.
Have just recieved a letter from CBA/Colonial 24 months after the date indiciating that I am not upholding one of the conditions of having a MAV package and need to reopen said account.
No dramas – play the game, use their money and move on – and don’t lose sight of the bigger picture.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Ahhh, this all brings back memories for me!
Yes, ANZ required us to have an account with them for the monthly direct debit of payments.
We found out on the morning of settlement…..
I raced to the bank and opened an account, only to discover that because the loan was in hubby’s name and the account was in mine, they wouldn’t accept it.
So hubby had to open an account. We managed to get around it on the day by using my account and on the understanding he opened one asap (which he did). We then notified the bank of his account, and of course when the first payment was due they direct debited it from MY account which had nothing in it….
I love dealing with big banks!!Keep smiling
Felicity
Hi all
Thanks for your responses
Terryw
The Broker was able to negotiate the application fee down from $600 to $200. However he encouraged me to take the professional package at $295 for future borrowings etc.If i open a/c then close it this may be then in breach with the conditions as set out and they may not close it. I do want to try and do the right thing as you never know when you may need them.
What p…ed me off was that this was not disclosed to me. I also have a Professional package with the NAB. The idea was to ultimately take the PPOR over also thus the ANZ professioal package. In the immediate term though the cost is too high so only the IP.
Thanks all for sharing your own experiences and suggestions.
regards
AlfWhat application fee?
There is no application fee when you opt for a pro pack – zip, zero, zilch – the $600 is fully waived in lieu of the $295 annual packaging fee.
cheers
brahms
Mortgage Broker
[email protected]I don;t understand why your broker did know about it. We’ve just signed paperwork with ANZ and as it was a condition of the loan, we had to get it.
Bit confused how broker didn’t know…
Hi all
Sorry if i didn’t make it clear. The application fee was $600. The broker negotiated with ANZ and was reduced to $200.
The broker indictated for the sake of $95 the break free was a better option.
The fact that you had to have another account was also known, and the broker did tell me.
What threw the broker was that the loan interest payments had to come from the ANZ other account no other account.
So as i understand it
Breakfree
must have ANZ account
must make loan interest payments from ANZ account
must have credit card min $7500
other benefits re fees etc.No Breakfree
Interest loan payments can come from any account
do not have to have ANZ account
do not have to have credit card
some fees applyDoes this appear correct?
regards
alfHi Alf,
Regarding the ANZ break free package, you can choose either of the following, an Access advantage account, ANZ One 100% offset, or an equity manager facility,The break free package is ok providing you intend to make regular use of the no loan approval fee as this will compensate the $295.00 annual package fee,
Keep in mind, Discounted interest rates offered by rival credit providers are more attractive, if and when your total borrowing accedes $250KRegards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi
At what stage am i at i have signed the necessary paperwork. All that stands being finalised my electing to use my NAB account to pay the interest on the loan and not using the account set up by ANZ.
So if i decide not to go ahead for example can ANZ force me to take the loan. or can i not accept the loan.
regards
AlfHi Alf,
The credit contract is not valid until such time as you sign the letter of offer from the ANZ.
Its probably a good idea to check this with your broker,Regards
Steven
Mortgage Broker
Mobile Mortgage Market[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi all
Thankyou all for your responses and input. Had a discussion with my broker and he indicates the response from the ANZ is as follows.
Whether with a breakfree arrangement or not if the loan is Interest Only then the way the system is set up it has to have an account with ANZ to direct Debit. The reason is because interest is calculated daily and 28days/30days/31days different amounts are taken out monthly. So basically the system isn’t set up to deal with this from another institution.
P&I is ok it can direct debit any institution to get the funds.
Well something to be aware of.
regards
Alf
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