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paying off the mortgage

Discussion in 'Property Finance' started by James Hill, 1st Sep, 2015.

  1. James Hill

    James Hill Active Member

    Joined:
    18th Jun, 2015
    Posts:
    29
    Location:
    Sydney
    Hi All

    I am getting close to paying off the mortgage on our PPOR,
    Any ideas on the average costs to expect that are associated with the full payout, also any tips or traps to watch out for? Thanks for the advice!
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Location:
    Melbourne, Nationwide
    The costs can vary depending on which lender you're with and the state the property is in (you're obviously in NSW).

    You'll generally pay a mortgage discharge fee, between about $150 - $350 depending on the lender. You'll probably pay some legal costs to get the title but I'm not sure what this is in NSW. All up you're probably looking at more than $500 but less than $800.

    You don't necessarily need to discharge the mortgage and get the title to the property. Lots of people leave it in the banks hands. In this case, it doesn't really cost you anything. The loan simply closes, your repayments stop and the bank keeps hold of the title until you want it for some reason. This can be an easy and reasonably safe way to keep the title secure. Probably better of being held by the bank than in your sock draw. :)

    Either way, what a great position to be in! Well done!
     
    TheGreenLeaf likes this.
  3. James Hill

    James Hill Active Member

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    18th Jun, 2015
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    Location:
    Sydney
    Great thanks for the guides and detailed info, much appreciated Peter! Cheers
     
  4. PJ1

    PJ1 Well-Known Member

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    28th Jun, 2015
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    72
    Location:
    NSW
    Im in a similar position to james .
    i dont mean to hijack but it looks like you found an answer and this does kind of relate.
    Is the actual title ie the physical piece of paper the only record of the ownership of a property . Im surprised ownership isnt registered or held electronically these days. Is there a government department that holds these records or do people generally use a lawyer or safety deposit box . I have neither of these .
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    Yes it's a piece of fancy paper, and yes get a bank safe deposit box.

    The Y-man
     
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  6. Dustin M

    Dustin M New Member

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    australia
  7. Azazel

    Azazel Well-Known Member

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    Brisbane
    Good on you guys!
     
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  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Location:
    Melbourne, Nationwide
    I believe electronic registration is being rolled out Australia wide at the moment. I don't really know the details, but I'm told it will mean faster settlements and less fraud.
     
    PJ1 likes this.