What is a Section 27 Bank Confirmation Letter?
If you are a vendor selling real estate in Victoria you may be entitled to have the deposit released prior to settlement. However the procedure (see our article “Section 27 Deposit Release – How to Understand the Deposit Release Process”) is cumbersome, and there is no guarantee that the deposit will be released at all.
Download your bank’s Mortgage Discharge Authority form
To have the best chance of early deposit release a vendor whose property is mortgaged will require a letter from their mortgagee (lender/bank), on the mortgagee’s letterhead, confirming the information that the vendor is providing in the Section 27 Deposit Release Statement.
Do all banks provide a Section 27 Bank Confirmation Letter?
The short answer is YES! While all of the major banks have a specific form of bank confirmation letter (see the examples below), other lenders are able to generate a letter of confirmation by calling up a customer’s mortgage loan details and instantly generating the required letter.
