Banking Ombudsman warns investors to check with their bank before selling properties to release capital
August 27, 2014
The Banking Ombudsman has warned owners of multiple properties to check with their bank before selling any of them to release capital.
That’s because the bank may not let them keep as much of the sale proceeds as they would like too, requiring them to use some of the money to pay down any other loans they may also have with the bank.
“If a customer sells a property which is security for a loan, they usually keep the proceeds after the loan is repaid,” Banking Ombudsman Deborah Battell said.