Hi All,
Just listened to a webminar from Property Update http://instantteleseminar.com/?eventid=2676963. In the second question, Ed Chan advised there is a risk of banks clawback unused LOC fund due to the credit squeeze, and suggested to draw down all the fund and transfer it to offset account.
Easier said than done, most of the LOC accounts do not have an offset account. Therefore, if I transfer remaining of the LOC fund to my other loans offset accounts, I may not be able to claim my intererst generated from my LOC as I cannot see there is a valid investment or income produce "purpose".
What are your thoughts? Can bank really claw those unused funds back?
Just listened to a webminar from Property Update http://instantteleseminar.com/?eventid=2676963. In the second question, Ed Chan advised there is a risk of banks clawback unused LOC fund due to the credit squeeze, and suggested to draw down all the fund and transfer it to offset account.
Easier said than done, most of the LOC accounts do not have an offset account. Therefore, if I transfer remaining of the LOC fund to my other loans offset accounts, I may not be able to claim my intererst generated from my LOC as I cannot see there is a valid investment or income produce "purpose".
What are your thoughts? Can bank really claw those unused funds back?