When does Home Loan payments leave account? First thing or last thing?


#1

Hi there! Can anybody share with me their personal experience here - when does a Home Loan payment leave your BNZ cheque account? Is it at 5.30am in the morning, or is it the last thing at night?

If it is first thing in the morning, do you have a chance to ‘retry’ the transaction if you accidentally have insufficient funds?

This is so that I can be sure that I have the money at the right place when my new home loan kicks in a few months’ time. Thank you!


#2

For your home loan, do you know if you are paying by Direct Debit, or are you controlling and setting up an Automatic Payment or Bill Payment?


#3

Hi Bonzo,

I’m not sure yet - for a Fixed Home Loan, I presume I would not have any control over the payments…? Therefore a direct debit?


#4

Taless85 If the funding of the Loan is from a BNZ Account, then this happens at the end of the night, so as long as you have funds in your account to meet the loan payment that night, all should be good. If your funding account is at another bank, then it will depend on that bank and when it does the funds check on the Direct Debit it would receive from BNZ, so some may do a real time funds check and others may wait till end of night processing.

I hope this is of help.


#5

Hi, It is processed the same as a Direct debit to your power company and will come out of your account overnight on the due date. Hope that helps. This is what I found when my first payment went through after the changes to Automatic Payment processing from mid July.


#6

All processing happens overnight at end of day. In this real time world we need to be aware of intra day posting (Debit Holds) on transactions, like your EFTPOS transactions, Automatic Payments now, Bill Payments etc.

What I can not answer on Direct Debits at other banks, when they receive a DD, do any of them apply a debit hold real time and what will the future hold across the industry in New Zealand around Direct Debits.