Paying off mortgage

Discussion in 'Loans & Mortgage Brokers' started by 2155, 30th Dec, 2015.

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  1. 2155

    2155 Member

    Joined:
    16th Jul, 2015
    Posts:
    8
    Location:
    Perth
    We're in a situation where we're really close to paying off the mortgage on our PPOR. We recently refinanced and had a $50k loan, this is now down to $2k, with repayments being $250 a month. We'd like to keep the $50k loan open as a back-up option, so ....

    Dumb question - if we pay the loan down to $0, is the loan still open until we request for it to be closed?
     
    2155, 30th Dec, 2015
    #1
  2. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    This does depend on the lender - some will automatically close the account, others will leave it open for the remaining term unless you request it closed.

    Which lender are you with?
     
    Corey Batt, 30th Dec, 2015
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    3,980
    Location:
    Canberra, Brisbane and Sunshine Coast
    Best to call your bank/broker to get the answer.

    Some lenders will automatically close the account once the balance hits zero.

    Cheers

    Jamie
     
    Jamie Moore, 31st Dec, 2015
    #3