Bloody hate westpac!!
- Thread starter tess85
- Start date
The 'Can you increase my interest rate, charge me more fees, and then double dip all of the above' department?
pinkboy
What the bank did isnt that bad....The ATO readily accept that approach on a refinance. In time etc it does taint it. Its common bank practice unfortunately. Its ideal if they adjust your redraw balance instead and you then draw it later.
But you can also fix it...If you have a redraw you can deposit the $,000 back to the loan now and redraw it later when you are ready. Westpac allow this. They just want all the new loan to be drawn on the one settlement date.
This issue seems common to "The Mortgage Company" who Westpac contract to settle resi loans applications.
But you can also fix it...If you have a redraw you can deposit the $,000 back to the loan now and redraw it later when you are ready. Westpac allow this. They just want all the new loan to be drawn on the one settlement date.
This issue seems common to "The Mortgage Company" who Westpac contract to settle resi loans applications.
Offset is your own money, you can use it as you wish. The amount you have is calculated off of the loan balance to 'offset' how much interest you pay.
Redraw is where your money stays in the loan account. So whenever its withdrawn it actually counts as a new loand and thus the interest on it may or not be tax deductible dependant on the purpose of each withdrawal. If theres a mix of investment and personal withdrawals, you have to calculate which portion of interest is tax deductible. It sucks.
The offset account already had our personal savings in it though. And the banker/rep who went over our loan documents assured us that the funds would not go in our personal offset account.
I get that mistakes happen but it's really frustrating when you have tried to be explicit at every step of the way to avoid mistakes from happening... and they still happen!
Yea you could be right. I have a long history of wbc stuffing things up though and eventually you have to let your feet do the talking. Im liking cba, their customer service is better, their online banking interface is miles better and they are less of a hassle to deal with.
To be honest; I'm with CBA currently and have been for some years.
To go shopping right now would be a huge amount of work, and no doubt cost me money in refinancing and other BS which would wipe-out any perceived saving I might think will come my way.
I've been with all the Big 4 over the years, and a few other ones as well, and they all stuff up the minor stuff for some reason...I can't remember the last time I had a settlement go through smoothly on the day it was supposed to - always some glitch or three.
No doubt they give all that to the most junior staff to do, and in fairness to them, they are no doubt overloaded to buggery with work and details to make sure are right, and no time to do it all...gotta keep the productivity through the roof for the shareholders, you know.
They (Banks) are all great until you don't play their game.
Putting funds from an equity draw into an offset account is extremely common. It doesn't matter what instructions you give, every bank I've dealt with has screwed this up on multiple occasions.
The only ones who occasionally get it right are those who have a little box labelled, "Credit back to loan account". Even then they still get it wrong.
PS. I also hate Westpac, for lots of different reasons.
The only ones who occasionally get it right are those who have a little box labelled, "Credit back to loan account". Even then they still get it wrong.
PS. I also hate Westpac, for lots of different reasons.
So tess85 - what should you do in this case?
I am in similiar situation as I have just refinanced with Westpac and they did the same thing. Since then I have used some of the money in the offset to purchase another property.
A couple of days ago I moved in some of my savings into the offset account also. Can I just move the savings back out of the offset and move the rest of the money back into the redraw? From reading other threads it looks like it isn't as simple as that.
If your loan has a redraw its easy to fix the bank error. You draw the $$ from offset and credit back to the the loan. Your redraw available should increase by that value. Then when the expense (eg an improvt) needs to be paid you pay it directly from the redraw loan facility.
Using the $$ in the offset may be tainted if its got other $ in it. You are blending it. If the ONLY $ in the offset is the new loan proceeds its less a concern.
Alvins - Or you could credit ALL your savings from the offset to the redraw. Then draw down the redraw and you have converted personal savings into a new deductible amount for the new IP deposit.....
Using the $$ in the offset may be tainted if its got other $ in it. You are blending it. If the ONLY $ in the offset is the new loan proceeds its less a concern.
Alvins - Or you could credit ALL your savings from the offset to the redraw. Then draw down the redraw and you have converted personal savings into a new deductible amount for the new IP deposit.....
Yeah, I'm not interested in refinancing. My loans are spread around a couple of places deliberately as per my broker's suggested strategy.
Its more about moving the everyday stuff away so that I have to deal with them less often.
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