Hi all
As you might recall that I am in the process of selling my house (almost finish cleaning up!) and I approached the bank to explain want I was doing.
Just to get the picture, I have two investment properties of which one and my house is used as a security for this bank’s loan.
I explained to the bank that I do not wish to payoff the investment loan but have the proceeds of my house used as a secured deposit against the existing loan (offset account type facility). When the new house is found, the bank can release the funds and redo its security. I propose this way to avoid being forced to buy another property which could be more than the proceeds and may not be suitable for our requirements. Also the tax deductions of the loan is retained.
The bank refused to accept the cash as security only property. I ask you what is more secure, cash or property?
I may have to change banks and reorganise all my investment loans to get what I want.
Frustrated!
Bruce
Hi Bruce,
Sounds like you need a bank that thinks ‘outside the square’. Don’t get frustrated get even.
Obviously their not interested in your welfare but theirs…Look around there are some links posted in the ‘Useful Links’ section that has bank comparisons, loans and professional packages and the like.
Good Luck
Sooshie [
]There are no problems, only solutions!
Hi again all
Well today I received a letter from the bank saying I can use the cash as security until a new home is found!
This letter came from the local branch, not the Eastern States head office which whom I have been talking to.
The only catch I see in the letter is that it is not using the funds as in an offset account but in a Portfolio Cash Management Account! I will keep trying.
Bruce
Hi all
Wrote to bank regarding the use of an offset account. Thaey rang me and send can’t do!
I explained that they will have all my funds and give 2-3% on it while I am paying 6% on the loan, this can’t be right I asked. No, they said, there is no other way!
I’ll beat them yet, just wait!
Bruce
Hi Bruce,
have you try talking to a broker
cos they are more flexible than the banksyou don’t need to change them Bruce you just need to change BANKS
If i were to say to you
Bruce there is a Bank/Broker out there that can help you finance your current property into the way you wanted
will you switch tomorrow?Regards
JerryJerry
Definitely, it would take a lot of my shoulders. It can be stressful when things don’t go to plan.
Bruce
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