Line of Credit - is my money gone forever?

[natmarie73]

Thanks all,

I spoke to a call centre person on the phone this morning and he said that there would be no problem as far as he knew about resurrecting the loan and accessing my money as I paid it off by accident. Just has to go past legal and compliance dept first...

Apparently you have to have a min balance owing of $2000 in the loan which I didn't have any clue about.

Should know in a couple of days if it will be as easy as all that fingers crossed.

Ausprop, yes totally I haven't really "lost" it thank goodness. I can imagine how people who have lost large amounts of money for real must feel, makes you sick in the pit of your stomach.

 

[natmarie73]

we have a client departing ME this week over the exact same situation.

Spectre, did your client try to get the loan reinstated and what was the outcome. The ME call centre guy was confident they would reinstate the loan but your comment makes me feel a bit nervous

 

[Shaneelastic]

Thats what happens with cheAp low rate lenders

 

[Aaron_C]

Thats what happens with cheAp low rate lenders

ME Bank ain't exactly cheap low rate
Good policy niches though.

 

[Shahin_Afarin]

Is moving lenders an option? i.e. someone like Macquarie that does up to 5.09% on their LOC's?

 

[natmarie73]

No I don't want to move the two properties I have with ME - mainly because they wouldn't value as high in today's market as they did when I locked in the equity (both in Ipswich Qld).

I have been happy with ME, and it isn't their fault I don't have an understanding of their product. They are a pretty good bank to deal with overall.

 

[Shahin_Afarin]

Rightio - there is talk that they will bring out a LOC product fourth quarter 2013...

 

[Spectre]

Spectre, did your client try to get the loan reinstated and what was the outcome. The ME call centre guy was confident they would reinstate the loan but your comment makes me feel a bit nervous

Hi Nat
Sorry I didnt get a note you replied to me.

We sat yesterday with their advisor and worked through options as to variable, basic, offsets, locs, variations and so on.

the long and short of it is that ME was exxy on rate, they wouldnt swap out of a P&I payment on the investment loans, then apparently ME swapped the offset across to the inv loan which then screwed up the tax deductability. I dont get into how and why that happened as these clients just came across my desk about 1 week ago.

So when it came to a call about ease looking forward over the next 5 - 10 years they made the call to shift.

So while ME worked for them when they originally had deductable debt their situation changed and now we needed a more suitable facility going forward.

As a thought if your loans got paid down and out you might have the equity in the property now where you can look to shift / break the x-coll - if applicable. Not sure how that fits/if that is a concern for you or not.

 

[natmarie73]

Well, all good now. ME reinstated the loan yesterday without any hassle or questions so I can sleep easy again.

I have to say everyone at ME has been excellent to deal with both over the phone and by email. Unlike St George who are now in week 2 of getting an existing property valued for the refinance....