The same applies in Australia. The bank will require you to hold appropriate insurance and supply them with at least a certificate of insurance and/or the bank will arrange insurance for you. There is generally no requirement to have an escrow account as such although its a good means of making sure the funds are available when needed.
David On Mon, 2024-09-30 at 18:37 -0500, R Losey wrote: > Interesting - in the US, if we have a mortgage on our house, most > people > consider it prudent to have insurance on their house, and there are > usually > taxes based on house value (property taxes). The banks, being > paranoid > about losing their money, require house insurance while there is a > mortgage, and they push hard for an escrow account to collect the > funds to > pay both the insurance and taxes. > > > On Sun, Sep 29, 2024 at 1:39 PM Boniforti Flavio > <bonifort...@gmail.com> > wrote: > > > Hi Michael. > > > > I'm in Switzerland and there's no thing like the escrow account > > you've > > mentioned - thanks. > > > > F. > > > > https://www.instagram.com/boniforti_music > > https://soundcloud.com/boniforti_music > > https://bonny-j.bandcamp.com > > > > > > Am Sa., 28. Sept. 2024 um 23:54 Uhr schrieb Michael or Penny Novack > > via > > gnucash-user <gnucash-user@gnucash.org>: > > > > > > > > > HERE you are discussing transactions that were NOT enterable ib > > > > your > > > books (which are irrelavant to books begun 31.12.2023 > > > > > > > > I would enter it as follows (let's assume the real estate total > > > > cost is > > > > 500k): > > > > > > > > Assets:Fixed Assets:Real Estate - increase 300k > > > > Liabilities:Loans:Mortgage Loans: - increase 300k > > > > Assets:Fixed Assets:Real Estate - increase 150k (downpayment) > > > > Assets:Current Assets:Checking Account - decrease 150k > > > > (downpayment) > > > > Assets:Fixed Assets:Real Estate - increase 50k (reservation) > > > > Assets:Current Assets:Checking Account - decrease 50k > > > > (reservation) > > > > > > > > If the above is correct, there's another question. I started > > > > using > > > GnuCash > > > > this year and put the opening balances of all my accounts > > > > dating back > > to > > > > 31.12.2023, but I bought my apartment back in 2018. If I look > > > > at it > > now, > > > I > > > > would have a huge negative balance on my checking account > > > > (because the > > > > money was spent in 2018 but I have the opening balance from > > 31.12.2023). > > > > Should I just add another "opening balance" in my checking > > > > account > > which > > > > equals both the downpayment and the reservation fee? > > > > > > If what I am about to say confuses you, come back to this line > > > and > > > think---- if on 31.12.2023 you had 10,000 in your checking > > > account, of > > > what relevance is it (on 31.12.2023) > > > how it got there. All that matters NOW is how much. > > > > > > When you opened your books 31.12.2023 you should have entered AS > > > OF THAT > > > DATE > > > > > > "assets":"fixed assets":"Real Estate":"House":"basis" debit > > > 500.000 (credit equity 500.000) that's what it cost > > > <NOT > > > relevant where money came from> > > > > > > "assets":"current assets":"bank accounts":"bank > > > y":"checking" debit > > > checking account balance of that date (credit equity that > > > amount If > > > seems odd, you could have current assets other than in bank > > > accounts, > > > could have accounts at multiple banks, could have accounts other > > > than > > > checking. You can always do it simpler at the start and modify > > > your CoA > > > later as needed. > > > > > > "liabilities":"mortgages":"mortgage-abc" credit balance still > > > owed > > > 31.12.2023 and debit equity that amount > > > > > > BTW ---- I would use as description "opening entries" and of > > > course if > > > you use the Starting Mount facility the equity side would have > > > been done > > > for you. Since I learned pen and ink on paper I use explicit > > transactions. > > > > > > NOTE: What jurisdiction? Does your mortgage payment include an > > > amount > > > paid into an escrow account from which insurance and taxes are > > > paid. If > > > so, the balance as of 31.12.2023 would be an asset "escrow > > > account" > > > Legally yours even though you can't access it. > > > > > > Michael D Novack > > > > > > > > > > > > > > > _______________________________________________ > > > gnucash-user mailing list > > > gnucash-user@gnucash.org > > > To update your subscription preferences or to unsubscribe: > > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > > ----- > > > Please remember to CC this list on all your replies. > > > You can do this by using Reply-To-List or Reply-All. > > > > > _______________________________________________ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > ----- > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > > > > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. 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