Offset accounts when selling

Discussion in 'Loans & Mortgage Brokers' started by djyella, 15th Oct, 2021.

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  1. djyella

    djyella Well-Known Member

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    I am selling for the first time and my CBA IP home loan has 3 splits.

    1: I/O tax deductible - fully outstanding
    2: Polluted loan split - fully offset
    3: Refinance split - fully offset.

    Sale price incoming covers all loans.

    Settlement is in about 21 days. I'm not sure if I should ask bank or solicitor this but is it usual to leave the full offset amounts in #2 and #3 for settlement or is it more usual to move those out to non-home loan accounts prior to settlement?

    Or best to speak to accountant?
     
    Last edited: 15th Oct, 2021
    djyella, 15th Oct, 2021
    #1
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Most banks simply convert their offset accounts to regular transaction/savings accounts. When you sell, the bank uses the proceeds of the sale to pay off the loans and the offset accounts are left as they are. They now earn (negligible) interest and don't offset anything.
     
    Peter_Tersteeg, 15th Oct, 2021
    #2
  3. djyella

    djyella Well-Known Member

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    djyella, 15th Oct, 2021
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    CBA has 2 types of offsets

    MISA - no longer available and withdrawn from sale about 3 years ago. This is attached and intertwined with the Loan, and needs to be cleared before settlement

    Complete savings account - standalone savings account that can also be used as a savings account. This wont need the funds cleared before settlement

    ta
    rolf
     
    Rolf Latham, 16th Oct, 2021
    #4
  5. Terry_w

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

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    An offset account is merely a savings account and it is not affected by the sale of a property. It will still be there but will not be offsetting anything if the loan is not there.
     
    Terry_w, 16th Oct, 2021
    #5