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Bank Mistake - Interest Credited To Loan

Discussion in 'Accounting & Tax' started by Frosty123, 24th Jun, 2016.

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  1. Frosty123

    Frosty123 Well-Known Member

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    12th Nov, 2015
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    VIC
    Hi all,

    I recently moved into one of my investment properties and informed my bank of this at the time.
    Long story short, it took them over 2 months to reduce my interest rate to that of a PPOR rate.
    They apologized for this, and advised I would be credited the difference in the interest rate over that two months.

    I've now checked today and they've put money back into the loan (rather than the offset account). This would be fine, however it has also been credited to the loan for one of my other investment properties (which this property I have moved into is secured against - The funds were used as the deposit).
    The amount is only $36 and $12 credited to the two loan accounts.
    Is this a concern?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    18th Jun, 2015
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    Perth WA
    No - it just means your loans are a tiny bit smaller. Don't redraw it though.

    The cross secured properties are more of a concern :)
     
    chylld likes this.
  3. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
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    Location:
    VIC
    Hi Jess,

    Thanks :) With regards to the properties being cross secured, I didn't think they were.
    I had IP1 (now my PPOR) valued and found that I had enough equity for a new IP. A new equity loan was established against IP1 and the funds drawn down in an offset to use for IP2 deposit and purchase costs. The other 80% of IP2 was funded with a new loan (granted, it was a new loan with the same bank).
    Does this mean the properties and cross secured?
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
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    Location:
    Perth WA
    Possibly - if you went direct to bank I'd suggest there's a high chance unless you specifically told them not too. It was your wording (below) that made me think they were, but I may have misinterpreted. :)