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Trying to pay funds back into loan account but it keeps getting reversed!

Discussion in 'Property Finance' started by Otie, 23rd Jun, 2016.

  1. Otie

    Otie Well-Known Member

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    I have just taken out a new loan for an IP deposit.
    The loan has been settled and the bank deposited all the funds into my personal account.
    As planned I have attempted to repay all the funds aside from 1k back into this loan split via pay anyone.
    I copied and pasted the loan ACC details into my pay anyone and made the transfer in 25k lots as that was my pay anyone daily limit.
    A few days later I have now noticed that all of these payments have been reversed back to me (I'm assuming by the bank the loan accs are with as my personal bank said they were rejected by the receiver but they're system was down so they couldn't give me more detail.
    Has anyone heard of this happening before? The loan settled 7 days ago
     
  2. Heinz57

    Heinz57 Well-Known Member

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    Yep. Banks dontcha hate em?
     
  3. Greyghost

    Greyghost Well-Known Member

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    Call you bank. Solved.
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    which bank?
     
  5. chylld

    chylld Well-Known Member

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    Unless I read it wrong... why are you trying to pay down an investment loan?
     
  6. Perthguy

    Perthguy Well-Known Member

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    I did this recently. I wanted to use an investment loan for a new investment purchase. Previously, money had been drawn for a different purpose. Putting all the money back in the loan and re-borrowing it resets the purpose of the loan. New borrowings = new purpose. Watch out that you don't fully pay back the loan though, or it could automatically close!
     
  7. Perthguy

    Perthguy Well-Known Member

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    No, I have not heard of this happening before. I recently reset a loan and I did not have this problem. Call your bank and find out what is going on.
     
  8. chylld

    chylld Well-Known Member

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    Curious about the reasons behind changing a borrowing's purpose from one investment to another investment. Assuming you have no non-deductible debt to pay down as you would have debt-recycled.

    Was it because the original investment ceased to become an investment? Or simply tidying up loans to match up security and purpose?

    edit: or was it to take advantage of different ownership ratios in the new investment?
     
  9. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Give your bank a call to see what's going wrong - it's probably a minor error.

    The only time I know this legitimately happens on purpose is with certain non bank lenders who are not deposit taking institutions and allow 100% of the loan to be repaid without closure - if you put 100% of funds into the loan they will not allow any further in the loan and if transferred to them they will bounce it back.
     
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  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    He probably borrowed and parked the borrowed money. Now wants to pay down the loana nd then reborrow when investing. Like in Tax Tip 1
     
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  11. Perthguy

    Perthguy Well-Known Member

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    Terry is mostly correct, except it wasn't me that parked the money in an offset account, it was the bank. It also wasn't me that contaminated the borrowed money in the offset account by depositing non-borrowed funds into the offset account, it was the bank... even after I asked them not to do that. And this is why we don't park borrowed funds in an offset account ;)
     
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  12. Perthguy

    Perthguy Well-Known Member

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    As per my post above but also the new property has been getting low valuations in its current condition, so not suitable to use as security for a loan at this stage. Right now it is unencumbered but will be suitable to use a security for a loan after renovations. Essentially we needed to use a loan secured by another property to buy this property.
     
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  13. Otie

    Otie Well-Known Member

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    Just found out bank had provided me with incorrect BSB! All fixed now thankfully the BSB didn't belong to any bank and thankfully the bank had emailed these details to me so I had the paper trail if needed to prove the bank emailed me the incorrect details. Scary stuff!
     
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  14. chylld

    chylld Well-Known Member

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    Glad your problem is sorted!

    For future reference, you can use a free service like BSB Search - Find BSB Numbers in Australia to check a BSB before you use it. Especially handy for rebranded accounts, e.g. my Macquarie accounts are actually Westpac accounts at the "Macquarie Securitisation" branch. (Handy when filling out direct debit forms etc.)
     
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  15. Perthguy

    Perthguy Well-Known Member

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    I am one of those paranoid people who check the BSB and account number prior to transferring any funds... especially $25k! :eek:
     
  16. Otie

    Otie Well-Known Member

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    Usually I transfer $1 and once that's there I transfer the rest for pay anyone once their details are saved but this time I'm overseas and had trouble with wifi etc so was under pressure
     
  17. Oshawott

    Oshawott Well-Known Member

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    regarding paying back a loan to redraw and reinvest.....how much do most people leave unpaid? is 1k too much? too little? will it cause a tax headache (aka mixed purpose loan) or is the amount small enough to not worry? @Terry_w pls?
     
  18. markson

    markson Well-Known Member

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    I had to do it with CBA. Paid back to $1,000 and then the day I was going to start using it I paid it back to $1 and then immediately used it.
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You should leave in as little as possible without actually closing the loan. Becareful with direct debit payments as you might pay it down to $100 and then have a $900 direct debit paid into the account which would pay it off completely.
     
  20. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    Just happened to me with refinance of a few loans. The bank put the surplus into my offset. The banks need to be educated on this stuff.
     
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