Lender not collecting mortgage

We have a unique dilemma. We have recently bought a property. The first mortgage payment was due a few weeks ago, but the lender hasn't withdrawn the funds from our account. We have checked our documents and we made sure that we filled in all the forms (including direct debit authorisation form) correctly.

We have not yet received any phone calls or notices from the lender. When I looked up my online banking, there are no loan accounts set up.

Would it be possible that our loan has been lost due to some admin error? What could be the consequence for us?

 

It is your responsibility to make the payment.

Contact your lender and arrange to make the overdue payment immediately. Then follow up with your bank.

The consequence will be the possibility of extra interest and/or a late fee. Also it may affect your credit rating.

 

Yes, contact the bank asap and ask.
Nothing worse than a default on the first payment

I have had this previously and stressed out
When I rang the bank the first payment wasn't actually due until 5 weeks after settlement, first payment date was listed on the loan doc's .

 

It is important to be diligent after buying any property, checking that all payments and appropriate bills arrive and payment arrangements actually happen.

We noticed after buying our first home that we didn’t receive any bill for council rates. We were not sure of the time frame, but after 12 months we knew things were not right. We contacted our local council and they advised that they had not been notified of the change of ownership. Property was close to council boundary and solicitor had sent notice to wrong council. The council sent us a rates notice and waived any late/penalty fees as we had brought the issue to their attention.

 

Very common. The land title issue when a change of owner occurs doesnt update council. Most solictors and conveyancers will mention this in the settlement letter. Many dont.
- Council
- Water
- Land tax
- Strata (they may send it to the property anyway)

Often picked up when we do the tax and note no payments. Or when client completes the checklist. Not that common.

Q : How does this impact deductions ?
A : Exception land tax the deduction is given when paid. Land tax arrears are based on the land tax assessment date and not when it is paid.

 

Best to speak to the bank about it - likely an admin error. Getting on top of it early should resolve any major headaches down the line. With a move to positive credit reporting where monthly repayments are noted on your credit file, worth picking up the phone sooner rather than later to protect your credit file.