Loan coming to an end

Discussion in 'Financial Planning' started by The Gambler, 14th Jan, 2020.

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  1. The Gambler

    The Gambler Well-Known Member

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    My final loan is coming to an end late this year and was wondering if I should try and keep it going by lowering the repayments.

    Are there any benefits in keeping a loan going versus paying it out? The loan doesn’t have a servicing fee and I don’t have a monthly fee on the associated bank account so the only concern would be the very minimal interest.
    thanks.
     
    The Gambler, 14th Jan, 2020
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    do u have the resources to re establish it if you had to ?

    ta
    rolf
     
    Rolf Latham, 14th Jan, 2020
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  3. The Gambler

    The Gambler Well-Known Member

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    Rolf,

    Does resources mean money?
    the money is sat in a redraw at the moment so I wouldn't have access to all of it, but def a chunk of it I could use I'd imagine.
     
    The Gambler, 14th Jan, 2020
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If the loan is PI it would just pay itself off I would imagine.

    The benefit of keeping it open is that
    a) you might be able to use redraw, or
    b) you might be able to further borrow against it with the same lender without incuring discharge of mortgage fees and lodgement of new mortgage fees.

    c) also harder to steal if there is a mortgage on there.
     
    Terry_w, 14th Jan, 2020
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  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    sorry

    meant income to borrow again at a later time

    ta

    rolf
     
    Rolf Latham, 15th Jan, 2020
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  6. Brady

    Brady Well-Known Member

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    It's always easier to get money from a bank when you don't need it.
     
    Brady, 15th Jan, 2020
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    maybe not these days with responsible lending.
    If you don't need it they would not be responsible in lending to you
    If you do need it they would not be responsible in lending to you
    (joke)
     
    Terry_w, 15th Jan, 2020
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  8. Brady

    Brady Well-Known Member

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    Even more so these days...
    But more so that he already has it, redraw, no fees, leave balance $1 pay interest on that (cents)
    Doesn't have to explain what, where, why he's using it when he wants to
    No income, expenses, statements, liabilities to be verified...
     
    Brady, 15th Jan, 2020
    #8
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