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Repayment question

Discussion in 'Property Finance' started by Otie, 9th Jun, 2016.

  1. Otie

    Otie Well-Known Member

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    26th Mar, 2016
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    Vic
    I have a loan about to settle. Planning to pay all new funds back into split loan account to use to directly redraw to their final destinations.
    My question is, 30 days from settlement when the first repayment is due, is the repayment due in full even if the loan balance has not been drawn down (if I haven't used it yet)?
    We are going on holidays and will not be using the funds to buy our investment property til we get back from overseas, so just trying to figure out how much to leave behind to cover the repayments.
    The bank have set up direct debit, so I'm assuming regardless if we have used the funds or not they will still take that repayment?
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Repayment should be on amount actually drawn.
     
  3. Redom

    Redom Mortgage Broker Business Member

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    Sydney (West) and Canberra
    Heya,

    No you don't have to repay on the investment loan thats not drawn on.

    You'll only have repayments on the drawn funds (assuming interest only set up).

    Which bank are you with. Be careful putting all the funds back into the loan and going away - plenty of lenders close the loan accounts if they are fully repaid.

    And yes, they'll take the repayment from the nominated bank account. The repayment amount will be based on drawn loaned funds.

    Cheers,
    Redom
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If the loan is interest only it should be just the Interest payments. Its unlikely you have PI but if you did the full repayment would come out.

    Also some lenders charge 1 month after settlement others charge on a certain day of the month.

    If you are going away you could just leave the cash in the offset account and pay down the loan before using.
     
  5. Otie

    Otie Well-Known Member

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    Location:
    Vic
    Thanks
    1 split is IO
    The other 2 are not. I will just leave the cash in it