Full Property ownership

[santaslayer]

Hi All,

Just a question with regards to owning your PPOR.

What literally needs to happen between you and the bank once you have paid your PPOR loan outright? How do I obtain the contract of the house etc?


Thanks in advance.

 

[travelbug]

You can go and ask for the deeds.
But seeing that this is a property forum you might like to leave it there and use the equity in your PPOR to buy another property.

 

[pudestcon]

Ask the bank for the title deeds and they will tell you how much you have to pay before the deeds will be released

 

[long88]

Once deed is in your hand, you have to find a safe deposit to store it.

so i suppose it is safer to leave it at bank, and say leave $100 mortage on the acc, and $2 monthly repayment.

that is what i do with mine, i thoughts on this ?

 

[Gentle_Chief]

Good on you,

I am many years away from that moment of Glory!

But, if I were you, I would take the released title deeds to my solicitors just to make sure that there are no encumberances whatsoever.

And then, call all friends and family & host a massive party in celebration! Well isn't this the moment we were waiting for when we first signed up for the loan!

 

[asdf]

But, if I were you, I would take the released title deeds to my solicitors just to make sure that there are no encumberances whatsoever.

It will be cheaper and safer to keep it at the bank. Get a LOC and stick it back into the offset. The meager bank fees is well worth eliminating the risk of fraud or something going wrong. If the CT fell into the wrong hands and new buyer gets his name on the schedules, you could easily find yourself out of a house!

 

[Lamingtons]

That's pretty shocking and scary that the title deeds. Thank goodness I read this forum. Although i'm a longgg way away from full ownership but I'm glad that I am informed when that happens two decades away.

 

[Buddybee]

Ring your lender and ask what their process and in particular what their mortgage exit fees are. How you secure your title is important too - it's not something you should just keep at home.

In my case, we've had the load for 3 years and will be charged my lenders "standard" exit fees - no penalties. Their exit fees are last 2 months interest caluclations debited to my account + $395 loan discharge fee.

At this stage, I want to retain access to the equity, so I'm doing something similar to long88 - have under $500 owing, and pay $20 monthly repayments.

Cheers
Buddybee

 

[yo yo ma]

At this stage, I want to retain access to the equity, so I'm doing something similar to long88 - have under $500 owing, and pay $20 monthly repayments.

I have just gone interest only on the home loan with the balance in an offset account. This way you have the funds available if needed and don't have to worry about the discharge fees etc.

 

[santaslayer]

Ring your lender and ask what their process and in particular what their mortgage exit fees are. How you secure your title is important too - it's not something you should just keep at home.

In my case, we've had the load for 3 years and will be charged my lenders "standard" exit fees - no penalties. Their exit fees are last 2 months interest caluclations debited to my account + $395 loan discharge fee.

At this stage, I want to retain access to the equity, so I'm doing something similar to long88 - have under $500 owing, and pay $20 monthly repayments.

Cheers
Buddybee

Mortgage exit fees exist even though I've had the loan for about 15 years? I thought these fees were only if you exited early? Sorry for the ignorance but this loan was taken out for a PPOR, never an investment. I'll call the bank to check this out!

Many are also suggesting that I leave a few bucks in there so I can leverage off it for an IP. My question is can't I use the house I fully own as a leverage anyway? Is this to avoid loan startup costs again or am I missing something?

Many Thanks for the feedback guys! =)

 

[PWL]

I agree with what other posters have said , to basically leave it with the bank, and keep a few hundred dollars on the loan, much easier this way, saves the hassle of storing it yourself. Also, you have the equity readily available if you are purchasing other properties, etc.

just my opinion

good luck!

 

[hobo-jo]

The title won't be at the bank, it will be at the Land Titles Office (LTO), with your financial institute holding an interest in the property.

You can payout the loan (and not pay the title release fee) and it will just sit at the LTO until you do.

You can pay the release fee to get the title back (generally to the tune of several hundred dollars). The wait can be fairly long, up to around 12 weeks from memory (?).

If you still have the loan open with little bit of money owing, generally people keep it this way (if you have ability to redraw funds), potentially saves fees if you decide to borrow against the property again.

 

[long88]

Check of title ?

why do i need to get solicitor to look at it ? if the bank are happy with, then everyone will be happy, at the start it is their financial interest anyway, so they will have to get it right ?

i have some $$$ available to withdraw as well, but don't know what to do with it atm.

any good property to look at ?

Good on you,

I am many years away from that moment of Glory!

But, if I were you, I would take the released title deeds to my solicitors just to make sure that there are no encumberances whatsoever.

And then, call all friends and family & host a massive party in celebration! Well isn't this the moment we were waiting for when we first signed up for the loan!

 

[asdf]

i have some $$$ available to withdraw as well, but don't know what to do with it atm.

any good property to look at ?

There are heaps of property for sale on realestate.com.au. Just pick one, it will go up in 10 years time anyway so don't worry about it.

 

[Dazz]

The title won't be at the bank, it will be at the Land Titles Office (LTO), with your financial institute holding an interest in the property.

You can payout the loan (and not pay the title release fee) and it will just sit at the LTO until you do.

You can pay the release fee to get the title back (generally to the tune of several hundred dollars). The wait can be fairly long, up to around 12 weeks from memory (?).

If you still have the loan open with little bit of money owing, generally people keep it this way (if you have ability to redraw funds), potentially saves fees if you decide to borrow against the property again.

I am unsure what the other states are like, I can only comment definitively on what happens here in WA.

There seems to be some confusion centred around nomenclature. The system I'm used to works like this ;

The 'original' certificate of title stays with the Lands Titles Office permanently. It never goes anywhere...ever.

The 'duplicate' certificate of title stays with the Bank until you have discharged the mortgage. This is the title you receive when you own the property outright. Unfortunately people sometimes refer to this duplicate as the 'original title deed'.....it's not of course, but it's as close as Joe Public ever gets to one.

It is a duplicate of the original, and the one that sometimes gets misplaced if you are not careful with it. I agree that leaving it with the Bank with minimal debt against it is the safest and cheapest approach.

If it does get lost, the Owner must go through a fairly exhaustive process to get another 'duplicate', which is always checked by the authorities against the 'original' that the LTO permanently holds.

Hope that clears up some of the confusion. Once again, I have no idea if this is replicated in other states around Oz, but I'd imagine the states have copied each other and have the same overall system.

 

[long88]

forgot to mention, i cant service additional loan atm, i have just bought my first IP. and that have drain most of it, although i am on very conservative, but i am still waiting for some cheap property (or cf+), but never see it. any idea ?

 

[long88]

thx dazzling, i think that clears up more, and it makes more sense