Disbursement authority leftover funds on settlement?

[J_aco]

Hi all,

Would appreciate your advice:

Received loan contract and need to fill in disbursement authority.
* IP loan with offset
* Never had any other loans before

For "Leftover funds on settlement", should I:

- let it be credited to my loan acct? But I should not pay down the loan right?
or
- let it be credited to my offset? But is this considered to be putting "borrowed funds" into offset?
or
- my usual savings account? But if later on I transfer money from this account to offset, will there be any issue?

Thanks in advance!

 

[Rolf Latham]

will the loan actually have left over funds ??

If its a purchase loan, thats usually unlikley

ta

rolf

 

[Terry_w]

Yes, there shouldn't be any left over as the solicitor will ensure only the amounts needed as drawn as cheques and it all balances.

For refinances there may be some left over as loan amounts are set before final interest payments are known. In this case I think the funds should go back into the loan - generally.

 

[Evachange]

Back to the loan account is usually the cheapest, otherwise you sometimes have to pay extra bank chq fee's etc.

 

[danwatto]

Could be tax issues if you put it in your personal account.

Back to the loan account is safest.