Why is it.................?

[LG17]

Originally Posted by Itsme

Never trust banks, and in my opinion close your mortgage, you really don't need it, plus you now have an asset that will cover any type of loan including a mortgage, if the needs arises again.

Should the unthinkable happen and I need to re-mortgage then it won't cost me anything to do it.

[Itsme]

Originally Posted by LG17

Should the unthinkable happen and I need to re-mortgage then it won't cost me anything to do it.

Just remember your property title is still in their hands (mortgaged), not cleared to you, something to think about against a modest loan fee.
I was thinking the same as you but decided to get the title back under our name & cleared from the Bank.

[prktkljokr]

Depending on how much you would need to borrow, the fact that you own your home any bank will throw money at you without the home as security, you have already proven yourself by paying it off, the only time you would need the mortgage again is if you were borrowing to buy another house/s.

[Citroënbender]

I’d be interested to hear PeterB-CV8’s take on this.

[Peter B - CV8]

It's the age old dilemma.... My personal feeling is to get the Bank to register their Discharge of Mortgage - so that your Title deed is clear. It's a great feeling to know that a Bank isn't part of your life anymore :-) Yes, it will cost you a couple of hundred dollars - but it's a worthwhile expense just for the peace of mind.

[Citroënbender]

What about the obligation angle; borrowers are generally supposed to inform lenders of changes to their personal situation that credit was originally predicated upon? Surely it would make redrawing difficult if one was honest about retirement…

[Peter B - CV8]

Just because the Bank might already hold a property as security doesn't mean that they don't have to carry out a complete credit assessment when you ask them for a loan.
Sometimes it can be a good idea to pay the loan balance right down, but keep it open & with access to loan redraw, if you are unsure if you'll meet the Bank's credit assessment criteria. Obviously you'd also need to know that you can meet loan repayments etc.

[FTE217]

Originally Posted by Peter B - CV8

It's the age old dilemma.... My personal feeling is to get the Bank to register their Discharge of Mortgage - so that your Title deed is clear. It's a great feeling to know that a Bank isn't part of your life anymore :-) Yes, it will cost you a couple of hundred dollars - but it's a worthwhile expense just for the peace of mind.

yep here here, I actually told my wife over the years lets keep the mortgage open for the ease of borrowing or investing or whatever - in time she said I'd like to finally have OUR title for ourselves its our badge of honour and I got to agree its a wonderful feeling.
I really don't see what gain there is keeping the acc open ?
Your cashed up, no debt, easy as **** if I like to open another loan with ease.