Loan transfer betw banks

[nintiger]

I have got a loan approved by a bank, but the condition is that I need to open a bank account with this bank and this account will be used to direct debit the interest from. The only option for this account is $5 per month or pay pre-transaction based. I want them to cancel the direct debit so I can pay the i&p myself from my main bank. They said no.

I think I just make it a variable loan and then transfer it to another bank which is willing to do so.

Seems transfer is for free. So do you think this is too 'naughty'?

Thank you

[Hound]

Some banks make you jump backward flips through fiery hoops. Such silly games. But at the end of the day they have done you a favour, so just do what they ask. You can always revisit the arrangement down the track. Usually bank staff are instructed to get more of your business, if they can. A good relationship with a bank is worth far more than $5 a month.

[Scott Miller]

PM me if you like as I have had 100% success at talking the lender around this policy.

[mortgage broker]

Westpac and ASB will give you a free account to make this transfer into.

[mortgage broker]

Some banks make you jump backward flips through fiery hoops. Such silly games. But at the end of the day they have done you a favour, so just do what they ask. You can always revisit the arrangement down the track. Usually bank staff are instructed to get more of your business, if they can. A good relationship with a bank is worth far more than $5 a month.

Yeah good advise hound, some people forget what type of headache a friendly banker can save you if they like you.

[Tan]

I read a book somewhere that said never to get rent paid directly into an account at the same bank that holds the mortgage as they can then see if all your tenants leave or some other problem arises. So I get rents paid into another bank and AP into the mortgage fortnightly at least the amount of the rents.

This has worked well for me as at times I have really been scraping the bottom of the barrel and the bank never had any idea. Also, I now live in one of my places and the bank continues along happy in it's ignorance, although I wouldn't qualify for my mortgage if they checked now.

During the whole time the AP had continued uninterrupted from my other bank, so I never get asked questions.

I hope the bank is not reading this!!!

There are 2 ways I have managed it.

1 Told the bank person that I had to use an account through work (while working at a Credit Union, and now an investment company).

2 Just said OK, yes, OK etc, then left the rents where they were going, and started an AP for that amount or more to pay the mortgage.

It sounds really sneaky now that I read it . I really am a nice person who always pays my bills on time!

[mortgage broker]

As long as you are making your mortgage repayments on time, the banks will have no concern about the rents coming in.