Surplus funds after settlement

Discussion in 'Loans & Mortgage Brokers' started by Musket, 15th Apr, 2019.

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  1. Musket

    Musket New Member

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    Just wondering how long it usually takes for the bank to credit surplus funds to your account after settlement day.
     
    Musket, 15th Apr, 2019
    #1
  2. qak

    qak Well-Known Member

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    Does the bank have the surplus funds?
    Or are they sitting in a trust account with the solicitor & real estate agent?
    I had to go and get the cheques - solicitor was same day, REA dragged it out a couple more days (but made an error in my favour on the commission, so no complaints here).
     
    qak, 15th Apr, 2019
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Sometimes it's almost instant - other times it can be a couple of business days.

    If in doubt - ask your broker/banker to suss it out for you.

    Cheers

    Jamie
     
    Jamie Moore, 15th Apr, 2019
    #3
  4. mehrar_84

    mehrar_84 Well-Known Member

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    all settlements are done by PEXA and credited same day. My last sale credit took less than one hour.
     
    mehrar_84, 16th Apr, 2019
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  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    As long as it takes them to do a funds transfer. They usually do the funds transfer on the day of settlement, the rest is just a function of the systems of the banks making and receiving the payment.

    Part of the lenders documentation usually includes a 'disbursement authority', a form where you state where you want the surplus funds to go.
     
    Peter_Tersteeg, 16th Apr, 2019
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    next day usually, be mindful some non banks may actually send u a cheque :)

    ta
    rolf
     
    Rolf Latham, 16th Apr, 2019
    #6
  7. essendonfan

    essendonfan Well-Known Member

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    What were the instructions provided on the authority?

    If it was to credit the same bank account as the lender's loan, it should not take more that one business day.
     
    essendonfan, 16th Apr, 2019
    #7
  8. turk

    turk Well-Known Member

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    Settled a property today at 2pm, funds in the bank by 3pm
     
    turk, 16th Apr, 2019
    #8
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