Surplus funds - Banks put it wherever they want?

Discussion in 'Loans & Mortgage Brokers' started by Kemi, 27th Aug, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Kemi

    Kemi Member

    Joined:
    7th Aug, 2020
    Posts:
    8
    Location:
    Australia
    Hi,

    I'm currently refinancing my home loan through a broker, and about to settle. As part of this, I am doing an equity release to invest. For tax reasons, I would like to control where the funds go. My broker says that she has very little control on where the bank (CommBank) puts the funds.

    Does this sound right? Do banks just not care and shove funds wherever is easiest for them?
     
    Kemi, 27th Aug, 2020
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,255
    Location:
    Sydney or NSW or Australia
    I'll give them my account details so they can put them in my offset :D
     
    Scott No Mates, 27th Aug, 2020
    #2
    Kemi likes this.
  3. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,659
    Location:
    Sydney (Australia Wide)
    Reasonably limited with most lenders.
    Usually done in one go (i.e. you cant split it into 5 components), and put into one transaction account.
     
    Redom, 27th Aug, 2020
    #3
    Kemi likes this.
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,005
    Location:
    Australia wide
    You might have to put it into a savings account with CBA. Often banks will ignore instructions anyway and create a mess.

    But get advice on the tax consequences.
     
    Terry_w, 27th Aug, 2020
    #4
    Kemi likes this.