settlement shortfall sums, should I deposit it in the solicitor's account or in the lender's acount?

Hi,

The lender has unconditionally approved my loan. The LVR is 80%, and, they have offered me the following two options to contribute the remaining 20%, for them to be able to provide all proceeds at settlement:

• deposit the final settlement contribution in the offset account the lender will open for me; OR,
• deposit it directly into my Solicitor Trust Account

It's my first property purchase, and I have no clue the PRO's and CON's of each method. Could someone please shed a light on my dilemma?

Thanks in anticipation,
Lady in Red

 

It doesn't matter too much in my opinion. If you want to claim the interest on the deposit it might be safer in the solicitor trust account

 

Not much difference in either, however if your bank offers it, it's most likely your solicitor will ask you to use that account.

 

Some solicitors charge a fee to use their trust account so you may want to check that before making a decision.