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Paying of a mortage

Discussion in 'Property Finance' started by blackenator, 21st Jul, 2015.

  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....
     
  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
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia 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.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA 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.
     
  5. blackenator

    blackenator Well-Known Member

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    ah thanks that makes sense thanks for the quick feedback guys
     
  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
     
  7. wombat777

    wombat777 Well-Known Member Premium Member

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    What a lovely thing to do!

    we'll keep it a secret
     
  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.
     
  9. blackenator

    blackenator Well-Known Member

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    Thanks guys for all your support much appreciated
     
  10. Corey Batt

    Corey Batt Finance Strategist Business Plus 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.
     
  11. chylld

    chylld Well-Known Member

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    Ninjas are cutting onions in my office

     
  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! 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!
     
  13. Gargamel

    Gargamel Member

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    Best to leave $100 or so in the account. Good on you :)