why has my loan amount increased post settlement?

Discussion in 'Loans & Mortgage Brokers' started by Jeremy86, 28th Feb, 2021.

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  1. Jeremy86

    Jeremy86 Active Member

    Joined:
    18th Jan, 2017
    Posts:
    25
    Location:
    Windsor, Brisbane
    Recently settled on a refinance (new mortgage to add my partner to mortgage and title) with the same bank and noticed that the pre-settlement loan amount has increased. The increase amount appears to be due to the below item in the settlement confirmation letter:
    "Transfer to Surplus funds payable to Account: 120506xxx = $x"

    I haven't shown the account number but I don't recognise it and the amount is around $7k.
    Obviously this is more than any interest adjustments.

    I have written to the bank but also wanted to ask on here so I've got more of an understanding for what on earth this $7k might be for and what are some typical examples of shortfalls and surpluses at settlement (of this magnitude) ?
     
    Jeremy86, 28th Feb, 2021
    #1
  2. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
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    Australia
    Break fee on a fixed loan? Lmi?

    But a surplus just sounds like you increased the loan itself and got the cash?
     
    Last edited: 28th Feb, 2021
    Trainee, 28th Feb, 2021
    #2
  3. Jeremy86

    Jeremy86 Active Member

    Joined:
    18th Jan, 2017
    Posts:
    25
    Location:
    Windsor, Brisbane
    Good ideas but no break fees and was told no new LMI.

    Also no cash deposited into any of my accounts !
     
    Jeremy86, 28th Feb, 2021
    #3
  4. wylie

    wylie Moderator Staff Member

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    Location:
    Brisbane
    We were slugged with $6k "mortgage insurance" type of fee and had to scramble to find it two days before settlement.

    We'd been told "no LMI" but didn't get that in writing. I spent about five years on and off pushing to have it removed. No way were they backing down.

    This was not a big 4.
     
    wylie, 28th Feb, 2021
    #4
  5. Terry_w

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

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    A simple explanation - You just borrowed more than the amount you owed
     
    Terry_w, 28th Feb, 2021
    #5
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