How to discharge a mortgage?

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

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eracode

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#2696461 22-Apr-2021 08:37

I believe a large portion of the quality of the experience you have with a bank depends on the quality of the individual you're dealing with within the bank (and the quality of your relationship with that person) - not necessarily on the branch or the bank itself.

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

floydbloke

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#2696515 22-Apr-2021 08:50

I find that once you are dealing with an individual of one of these large corporates (banks and beyond, e.g. insurance, telcos) NZ based personell are usually very customer focused and genuinely want to help. When I do speak to an individual I may make my sentiments about the organisation known but try very hard to no be grumpy with them.

It's usually corporate cost-cutting decisions that get me riled , e.g. removal of services that I like to use (because they're not profitable enough I guess), branches closing, call-centre offshoring, understaffed call-centres - i.e. longer hold times.

Did Eric Clapton really think she looked wonderful...or was it after the 15th outfit she tried on and he just wanted to get to the party and get a drink?

jonathan18

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#2717232 2-Jun-2021 12:39

I have a question tangentially related to the OP - we are not that far off paying off our mortgage, and have a revolving credit facility that’s not currently in use (but, from our perspective, this is because it has our savings balancing what is the other part of our ‘mortgage’).

Reading this thread it’s clear we should be able to retain our revolving credit facility even when we have paid off our remaining fixed mortgage and the revolving credit isn’t being used, which is great news - but in this scenario do banks still continue to provide the mortgage-related benefits - specifically do they continue to not charge standard account fees?

It’s not a deal-breaker if they do start charging, but it may have some bearing on how quickly we repay the fixed vs building up credit to pay off the amount sitting in the revolving credit...

Thanks in advance.

BlinkyBill

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#2717298 2-Jun-2021 13:55

A mortgage is a security which registers an interest against an asset; this means the Bank is registered as having a security against that asset in the case of a contractual default. There is really no benefit in discharging the mortgage unless you, the owner of the asset, wish to permit another agency to register their interest instead of the Banks.

In other words, the mortgage is not to be confused with the account structure and arrangements. In my experience the account arrangements persist even if the loan account balance is $0, as long as the mortgage isn’t discharged. This with ANZ and before that Westpac. Be aware though that my circumstances and total banking arrangements will be different to yours, most likely.

Who knows what your Bank might do?

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