Bank warning

Just a warning, if anyone has a reverse mortgage (seniors saving account) with St George taken out before the takeover by Westpac, the reply if you try to draw down on this account is "we do not support these accounts anymore".

So you cannot borrow against the account, which was a surprise when I needed a new vehicle.

If you have one of these accounts the bank will still charge you monthly fees even though you cannot use it and you have received no notice of the fact.

Luckily I was able to close the account.

Do not wait until you need money, check now to see if your contract is still valid.

:))

4 comments

I didn't know St. George had been taken over by Westpac. 

I have a small retirement cheque account with St. George and was surprised to receive a note from them telling me the interest rate on that account is now 0.25% per annum. 

Generous to retirees and pensioners aren't they?

Its not just pensioners and retires that are blessed with such largess from the banks. My transaction account gains the princely amount of about 0.1%! I always try not to spend the interest in one place...... A 'high interest' account I have on-line has an interest rate of 1.8% (3.05% 4 month introductory period). Guess where most cash money sits?

Re: "I didn't know St. George had been taken over by Westpac. "

2008.  Just AFTER Gail Kelly (then STG CEO), presided over massive staff cuts, then resigned , taking a new role as CEO of Westpac...  (Who then took over a leaner STG...)

Jobs for favours??

The merger between Westpac and St.George happened quite a while ago and was implemented on 1 December 2008.

See here.

ASIC warns against reverse mortgages.

https://www.yourlifechoices.com.au/finance/banking-and-investment/reverse-mortgages-concern-asic

Davo, how was your RM structured? Was it like a line of credit? Allowing periodical drw downs at your discretion? 

Seems odd that you would have a contract which the bank is not honouring? But if that is the case, best not wait any longer before you take action.

reverse mortgages are a curse.  ultimately the compounding interest will swallow the home.  it would be better to sell that home and put the money in super (new govt policy) and invest the rest in fixed deposits and buy your car etc with cash.  I get 2.8% with my bank.  bank comparison sites will give you these offers.  ingbank.  me bank.  and others?

 

When the house is sold, any ideas where Davo will live? 

Maybe he could sell offering vendor finance with a favourable lease?

Reversing the adverse componding interest effect on the reverse mortgage?

4 comments



To make a comment, please register or login

Preview your comment