Hi all,
I'm trying to figure out how others manage to pay an Interest Only Home Loan monthly repayments from an OFI account (not with the lender).
For example, if I have 3 investment property loans with 3 different lenders, I would want to use the one transaction account which I am maintaining for ALL my investment properties incoming and outgoings to also pay for the monthly interest repayment.
However, currently all 3 lenders/banks have require that I setup 3 different transaction accounts with each of them where I have to maintain / top-up funds in each to enable the monthly direct debits. Seems to be possible the only option since the monthly amounts will differ but surely there must be another way?
This seems cumbersome especially if portoflio grows bigger. I was thinking I could just maintain one transaction account which will handle all IP related ingoings and outgoings. I already have enough accounts and plastic cards to deal with.
Any ideas? thoughts?
When you complete your mortgage docs (if you have a broker they should help you if not the branch will) you will complete a DDR or direct debit request form.
You can nominate an OFI account on this form therefore only having to maintain one transaction account for all monies in and out. Way to go!
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Hi Colin, i too was thinking it would be as simple as that but the bank informs me that this is not possible because for interest only loans the amount is always a differing amount each month they won't know how much to deduct plus there is a 3 day delay from OFI so they said it's not possible?
im just trying to think how utility companies direct debit for electricity bills with differing amounts but the bank cannot?
jate wrote:Hi Colin, i too was thinking it would be as simple as that but the bank informs me that this is not possible because for interest only loans the amount is always a differing amount each month they won't know how much to deduct plus there is a 3 day delay from OFI so they said it's not possible?im just trying to think how utility companies direct debit for electricity bills with differing amounts but the bank cannot?
Yes, they can.
Which lender is this?
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
Using another account isn't usually an issue. Sounds like a difficult lender.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
ANZ Bank says they cannot do this where Repayment type = Interest only
was planning on using my CBA Investment transaction account as the master.
Opening a no-frills Aussie Home Loan for another property just purchased.
Hopefully they will allow it. Last thing I need is more accounts.
If it is the Aussie branded / funded Advantedge product then Yes you will certainly be able to have the monthly interest repaid from your CBA transaction account.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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