Paying of a mortage

Discussion in 'Loans & Mortgage Brokers' started by blackenator, 21st Jul, 2015.

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  1. blackenator

    blackenator Well-Known Member

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    Just had a quick question in regards to paying of the last payments of a mortgage. If you have someones elses home loan statement and go the bank and tell them you would like to pay it off would they be able to do that for you?

    Probably best to put in a scenario my mum has 15k left on her mortgage and hasn't been feeling to well as of late and I want to pay that last 15k for her as a lump sum but I want to surprise her. Hope that makes sense

    note: not too sure if this is posted in the correct section....
     
    blackenator, 21st Jul, 2015
    #1
    Tranquilo, freyja, wombat777 and 1 other person like this.
  2. Heinz57

    Heinz57 Well-Known Member

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    If you have the account details I don't see why not. What a nice thing to do
     
    Heinz57, 21st Jul, 2015
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  3. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    What a lovely idea!

    You should be able to deposit the funds no trouble at all, however perhaps a cheque would be a better idea - if she's elderly, having access to funds might come in handy and if the loan is paid out it might be difficult to re-borrow.

    Perhaps consider putting it in an offset instead.
     
    Jess Peletier, 21st Jul, 2015
    #3
  4. Terry_w

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

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    You are not paying the mortgage but the loan. The loan is secured by a mortgage = 2 different things. You could pay off the loan as it is just putting money into an account (if you know how much is owing), but you could not discharge the mortgage.
     
    Terry_w, 21st Jul, 2015
    #4
  5. blackenator

    blackenator Well-Known Member

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    ah thanks that makes sense thanks for the quick feedback guys
     
    blackenator, 21st Jul, 2015
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  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's a lovely thing for you to do.

    Yes you can do this - we did it for our parents. You go to the branch and ask to take the account to $0. It is then up to your Mum to close the account and apply for a discharge of the mortgage and get the title
     
    Westminster, 21st Jul, 2015
    #6
  7. wombat777

    wombat777 Well-Known Member

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    What a lovely thing to do!

    we'll keep it a secret
     
    wombat777, 21st Jul, 2015
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  8. legallyblonde

    legallyblonde Well-Known Member

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    If she is ill try not to give her too much of a surprise ;)

    Seriously though, lovely gesture.
     
    legallyblonde, 22nd Jul, 2015
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  9. blackenator

    blackenator Well-Known Member

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    Thanks guys for all your support much appreciated
     
    blackenator, 22nd Jul, 2015
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  10. Corey Batt

    Corey Batt Well-Known Member

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    Just be careful as some lenders will automatically close the loan when it hits a $0 balance - and your mother might be planning to draw from her redraw in the future for xyz reasons.

    Last thing you want is an act generosity leading a chain of events which leaves everyone worse off.
     
    Corey Batt, 22nd Jul, 2015
    #10
  11. chylld

    chylld Well-Known Member

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    Ninjas are cutting onions in my office

     
    chylld, 23rd Jul, 2015
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  12. Gockie

    Gockie Life is good ☺️ Premium Member

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    I guess you could leave it with a minimal balance and she can decide to pay that off or not!
     
    Gockie, 23rd Jul, 2015
    #12
  13. Gargamel

    Gargamel Active Member

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    Best to leave $100 or so in the account. Good on you :)
     
    Gargamel, 24th Jul, 2015
    #13
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