How to discharge a mortgage?

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Forums › Finance and wealth management › How to discharge a mortgage?

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#2695373 20-Apr-2021 17:04

floydbloke:

Not sure if any of the other big guys are any better, all comments welcome. Outfits like TSB or Heartland are looking quite appealing.

TSB are like dealing with the Clamperts. Crappy old systems and woeful app. Cheap though.

networkn

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#2695387 20-Apr-2021 18:08

KrazyKid:

Seems to be a bank thing at the moment - upset customers :)
Westpac has given be some low level grumbles in the past year, and now that my loan needs re-fixing, the would not match kiwibank.
So I'm off to Kiwibank.

I am about to call them to find out what the discharge fees are to move my floating loans.

I expecting bad news - they seem to love new fees at the moment. (one of my low level grumbles).

Don't do it. Kiwibank who we have been with for many years, are a pretty unpleasant experience all around. They aren't really a real bank and they act like it.

We would switch if it didn't cost so much!

Having said that, I have heard various people complain about every bank that you have probably heard about. Sometimes it's more about which things will bother you the most, rather than choosing one that won't give you any headaches.

Considering the incredibly healthy profits they make, you'd think they'd be falling over themselves to keep customers happy.

Ge0rge

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#2695390 20-Apr-2021 18:20

networkn:
Considering the incredibly healthy profits they make, ~~you'd think they'd be falling over themselves to~~ they don't really care if they keep all customers happy.

Ftfy.

engedib

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#2695391 20-Apr-2021 18:25

If you have multiple products with them, do it one-by-one.

Went through this a few years ago when Westpac made my home loan application very hard for no apparent reason.

If you announce that "I want to move all my stuff from here" you will get questions asked, will have to talk to the bank manager, etc.

How I have done it:

- Talked to the new bank first, they confirmed all the details (credit card, kiwisaver, mortgate rates, $1K cash for taking everything there :))

- Opened a new transaction account with the new bank, got the salaries changed to the new account

- Got the new credit cards from the new bank, started using them, paid off the old credit card, closed the CC account

- Transferred Kiwisaver

- With your case, once all the other accounts sorted, zero out the revolving credit account and request the bank to close it off, then ask a lawyer to remove them from the title, done :)

MCSE+M/S, MCITP

eracode

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#2695473 20-Apr-2021 22:18

engedib:

How I have done it:

- Talked to the new bank first, they confirmed all the details (credit card, kiwisaver, mortgate rates, $1K cash for taking everything there :))

..........

- With your case, once all the other accounts sorted, zero out the revolving credit account and request the bank to close it off, then ask a lawyer to remove them from the title, done :)

It won’t work in this order if you’re wanting a loan from the new bank - they’ll need to get a mortgage in place first - before they lend. You won’t be able to leave the release of the mortgage by the old bank until the end like this - unless you don’t need the new bank’s loan straight away. The new bank will want to register a mortgage and neither bank will allow the other bank to be registered as a mortgagee on your Title at the same time as them.

Sometimes I just sit and think. Other times I just sit.

BlinkyBill

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#2695574 21-Apr-2021 02:15

You don’t need a lawyer, other than for convenience. Your bank will charge a fee to prepare the discharge, say $40; and you can pay LINZ $176 to manually lodge the Form 11 “discharge a mortgage” with them. You need to supply photo-id or get a JP to sign lodgement.

Electronic lodgement costs $80, but you have to be an approved user of Landonline to do this, and of course most people wouldn’t bother with this for a single transaction.

I would think getting a lawyer involved would be $600-800 for the privilege of them doing a simple Landonline lodgement.

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Handle9

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#2696159 21-Apr-2021 16:13

mattwnz:

If looking for a new bank, TSB have good customer service and don't usually have any hold times.

I'm currently on hold, and have been for 15 minutes....

KrazyKid

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#2696168 21-Apr-2021 16:25

networkn:

KrazyKid:So I'm off to Kiwibank

Don't do it. Kiwibank who we have been with for many years, are a pretty unpleasant experience all around. They aren't really a real bank and they act like it.

We would switch if it didn't cost so much!

I've decided to give Kiwibank a go. I am really a very uncomplicated fella financially so there is not much for them to stuff up. All our Salary into a revolving line of credit we pay down over a year and a couple of fixed loan loans maturing at different times.

I have used a non-bank lender in Aussie so they should be no worse than them. (Famous last words).
A friend who has been Kiwibank them for years has been happy. So as you say everyone has issues with some banks at some times.

As for my costs to move everything is about to go floating so with the cash offer all should be $500 up.
If I had break fees that might be a different story.

The only thing I hate about moving banks is finding all the direct debits and changing them across. I'm bound to miss one.

Fred99

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#2696181 21-Apr-2021 16:50

My son opened a business account with Kiwibank a few weeks ago. Despite having personal accounts with them for ~10 years, they made him jump through hoops - ie multiple "proof of address" documents required and they had to be "recent" (within 6 months?), including bank statements, when they (and everybody else he deals with) encouraged paperless years ago. It was actually a problem, I think he had to get it sorted via a statutory declaration witnessed by a JP.

I dealt with Kiwibank years ago with an EPA over my father's affairs. Their staff seemed to have no idea at all about what they were required to do, they actually handed me their manual and asked me if the assorted legal paperwork I had in my hand met their requirements. "Of course it does - see".

OTOH I do now have a kiwibank account and Visa debit card, their internet banking works well, phone app works with google pay and I can switch between cards/banks when using paywave, so long as I continue to never have to go into a branch, then all is good.

Handle9

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#2696184 21-Apr-2021 16:54

Fred99:

My son opened a business account with Kiwibank a few weeks ago. Despite having personal accounts with them for ~10 years, they made him jump through hoops - ie multiple "proof of address" documents required and they had to be "recent" (within 6 months?), including bank statements, when they (and everybody else he deals with) encouraged paperless years ago. It was actually a problem, I think he had to get it sorted via a statutory declaration witnessed by a JP.

That's likely due to the ridiculous AML regulations and not Kiwibank. It gets even better when your bank isn't a full member of Financial Action Task Force (FATF) on Money Laundering.

martyyn

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#2696201 21-Apr-2021 17:24

We've been with Kiwibank for over 15 years. Both self employed, both with years of accounts and history but you would think we were strangers the way they behave when we ask for something.

It takes days to get an answer with their secure email and weeks to get answers to applications and on occasions their answers have just been "no". No explanation, no discussion, no negotiation.

We'll be trying someone else very soon.

@krazykid be aware Kiwibank will only allow you to have 25% of your total lending use a revolving account.

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KrazyKid

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#2696209 21-Apr-2021 17:41

Oh well we'll see how they go.
At the moment they have approved the structure of my borrowing as I want it. It's about 1/3 revolving credit, 2/3 fixed. And it gives me options to easily draw down more if I end up renovating. Hopefully I won't need to talk to them again for at least a year.
Anyway if it all goes pair shaped I can move banks again in 2 years 😃

floydbloke

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#2696400 22-Apr-2021 07:52

Based on what I'm reading in the posts here they're all pretty much as bad as oneanother, so I'll probably stay put.

Next time they p*ss me off I'll just have a little cry in the 'what annoys me' topic and get on with life.

Sometimes I use big words I don't always fully understand in an effort to make myself sound more photosynthesis.

Batman

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#2696404 22-Apr-2021 08:11

martyyn: We've been with Kiwibank for over 15 years. Both self employed, both with years of accounts and history but you would think we were strangers the way they behave when we ask for something.

It takes days to get an answer with their secure email and weeks to get answers to applications and on occasions their answers have just been "no". No explanation, no discussion, no negotiation.

We'll be trying someone else very soon.

@krazykid be aware Kiwibank will only allow you to have 25% of your total lending use a revolving account.

tried kiwibank only for 3 years then bye bye. they are not a bank.

Batman

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#2696406 22-Apr-2021 08:13

floydbloke:

Based on what I'm reading in the posts here they're all pretty much as bad as oneanother, so I'll probably stay put.

Next time they p*ss me off I'll just have a little cry in the 'what annoys me' topic and get on with life.

depends on the branch. not the bank (other than kiwibank - they are not a bank).

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