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Paying off mortgage

Discussion in 'Property Finance' started by paguatao, 30th Dec, 2015.

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  1. paguatao

    paguatao Member

    Joined:
    16th Jul, 2015
    Posts:
    7
    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?
     
  2. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,167
    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?
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,147
    Location:
    Canberra and Sydney
    Best to call your bank/broker to get the answer.

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

    Cheers

    Jamie