Westpac require interest payments to come from a Westpac account. What the?

I've just done my first loan deal with Westpac.
All the docs are signed and we are good to go for settlement.
BUT, at the last minute, they tell me that the CBA account I provided for the interest payments to come from isn't acceptable and I need to provide a Westpac account. Which means I now have to open an account with them for that one loan payment.
I wouldn't have had an issue if they told me that when I went to the branch to sign and lodge the docs. They accepted the CBA account I gave them and never mentioned having to open a Westpac account.
It makes it easy for me having all my rents paid into one CBA account and all loan payments coming out of that same account.
Is this normal procedure for Westpac?

Thanks
 
I vaguely remember this with another bank where on establishment you needed to have an accout with them. However, after settlement you could change it to any bank.
 
Just bend over and let the mightly Westpac have their way with you!

Any bank where the CEO doesn't bank with them! ... mate it's gotta be a good bank!

Follow their rules, do things their way and they will make some more money..

Have fun :)
Graeme
 
Is this normal procedure for Westpac?

YES

thought I should answer the question instead of just bitching about Westpac. Their lending criteria is good but if they can screw you they will.

We bank with Westpac and CBA, you need to work out the rules of the game and play to your advantage not theirs which is difficult when you don't know the rules and finding the rules takes a lot of time.

Cheers
Graeme
 
Just bend over and let the mightly Westpac have their way with you!

I'm running out of banks. Westpac was one of the last I could deal with. RAMS were keen on giving me a 90% LVR, but only at a 25% discount on the market value of the property, so Westpac got the deal.
Small price to pay for a decent equity release and the ability to move forward. I shouldn't complain. There are many who are worse of than me.
 
CBA insisted we open a regular transaction account with them when we refinanced, and takes the payments out of that. I don't think we were even given an option of another account at a different bank. We transfer money every fortnight from our respective credit union accounts to the CBA transaction account and I get the rent paid into there too. I suppose it is a good division, that account is purely for property.

When I had the loan with ANZ I had no other ANZ accounts and transferred money from my credit union direct to the loan. Funny, when it came time to get my redraw out they couldn't manage a transfer the other way :rolleyes:
 
I'm running out of banks. Westpac was one of the last I could deal with. RAMS were keen on giving me a 90% LVR, but only at a 25% discount on the market value of the property, so Westpac got the deal.
Small price to pay for a decent equity release and the ability to move forward. I shouldn't complain. There are many who are worse of than me.

hi rob, confused about the above statement, 90% lvr and a 25% discount on market value?? please explain this as i seem to be brain dead tonight??

i also did the same as you with regards westpac and cba accounts, and same result. also with westpac on settlement u will have to have the stamp duty money in there account as well cos they take that at the same time, that tripped me up, had only done cba in the past and stamp duty came out about 3 weeks later.... stuff up me cash flow. all a learing curve...........

thanks yorkie
 
hi rob, confused about the above statement, 90% lvr and a 25% discount on market value?? please explain this as i seem to be brain dead tonight??

Sorry, I should have said it was a re-fi. Might have made more sense.
RAMS offered me a 90% lend. However, the valuation came in at substantially below what it ought to have. The Westpac valuation was much closer to the mark, but only at an 80% lend. Same cash take-out on the deal, but without the fun of LMI thrown into the equation.
 
Hi Rob
Im signing loan doc's tomorrow with NAB , but I bank with westpac ,I will ask if NAB do the same thing , though I know MAC bank and suncorp are happy to take money from my westpac acc , thanks for the heads up on what 'may' happen at the last moment
stuart
 
Hi Rob
Im signing loan doc's tomorrow with NAB , but I bank with westpac ,I will ask if NAB do the same thing , though I know MAC bank and suncorp are happy to take money from my westpac acc , thanks for the heads up on what 'may' happen at the last moment
stuart

I have a couple of loans with Homeside (NAB). They are happy taking the interest payments from my CBA account.
 
Hi Rob

I have 3 loans with W'pac and they are paid by direct debit from ANZ.

Last one set up in Jan.09, so they may have changed their requirements.

Cheers

Pete
 
Hey Rob,
All our repayments to Westpac come from a CBA account....even with a recent settlement.

Not sure if things have changed in the past week or not but certainly hasn't been any issues for us.
 
Hey Rob,
All our repayments to Westpac come from a CBA account....even with a recent settlement.

Not sure if things have changed in the past week or not but certainly hasn't been any issues for us.

Thanks Kim. I'm fighting it. I'll see how that goes. It's gonna be over 40c today and heading out to the bank to open an account, after I've already been there signing docs just doesn't do it for me.
Stay cool!
 
Thanks Rob for starting this post. I was annoyed about the same thing. Got a refinance with CBA and they made me open up a CBA account for the loan repayments. I wanted the loan repayments to come out of ANZ where the rest of the loans were and where our personal account is. So I wanted the loan repayments to come all out of the same account!!

I just phoned CBA and viola! they said yes I could have the repayments come from another bank and promptly emailed me a Direct debit form.

I have just filled it in and will send it back so hopefully it will be actioned fror the next loan repayments.

It is a nuisance they made me open this account in the first place :mad:
 
It is a nuisance they made me open this account in the first place :mad:
We're finding the reverse, we're with credit unions with no loans or anything so our 'portfolio' is very small. With the change in fees structure they've snuck in over the years we're actually paying a small fortune in credit union fees.

Having the loan and transaction account with CBA it is fee-free (although they charge $8pm each for the loans) so we're gradually moving across to the CBA. Very gradually though, just moving direct debits as we change them or they expire.
 
st george were the same - had to open an account - whereas imb don't care where you pay it from as long as it's paid ... although i don't know how much of the "account opening" is actually required and how much is "lets see if we can get the suckers to sign and take a $10/mth fee from them".
 
Apparently, my loan product is a Flexi First Option. It's the only resi product in their product range which has this policy. Settlement can't be booked until I meet this requirement.
I'll just have to take the hit and brave the heatwave and go get it sorted so I can move forward.
 
Rob,
I had exactly the same problem in December. Even my Financial Advisor was taken back. We had signed all the documents, and 1 week from settlement, when they stated we couldn't use our CBA account and had to open one with them. They then wanted to charge me a yearly fee for the new account. I told them this was not going to happen unless Hell freezes over. Eventually they backed down and gave me a free account. A pain, but at the time their rates were the best and then after we settled their rates were the worst.

Chris
 
Hey Rob,
All our repayments to Westpac come from a CBA account....even with a recent settlement.

Not sure if things have changed in the past week or not but certainly hasn't been any issues for us.

All my Westpac repayments come from an ANZ account. Don't know what the problem is. Never had any problem getting this organised.
 
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