I need some financial advice in regards to my mortgage?
February 25th, 2009
Trissh asked:
I recently got a home loan and paid $440.00 to lock in an interest rate at 8.85%. 2 weeks after settlement I found out that my interest rate was locked in at 9.09% but the repayments had been calculated at 8.85%. I spoke to the bank numerous times and was told that the interest rate would be fixed. After many weeks and many more calls from me I was advised that the interest rate cannot be fixed but the manager offered to calculate the difference and pay it into our mortgage 6 monthly, but to do this I would need to pay $1500.00 (the difference over the 2 year fixed rate between 8.59 - discounted rate - and 9.09%.) We declined this. The bank has now come back and advised us that they are prepared to credit the mortgage with $1400.00 which is the difference in the interest rate between 8.59 & 9.09%, they will do this as soon as we advise that is the way we want to go. As this is our first mortgage I cannot see if this is any benefit to us. We need to get back to the bank with the outcome but are not sure if we should accept this. The bank has told me that as they left it more than 14 days to fix up the mistake, they now physically cannot put it back to 8.85%. Please advise which way we should go or if there is someone who will help me outside of the bank that we do not have to pay for.
Sorry I should have clarified – I am in Australia – And this was before the interest rate decrease. We paid for it to be locked in at 8.85% for 2 years. A mortgage (Not sure what type sorry). The loan docs say 8.85%.
we paid for it to be locked at 8.85% but NAB locked it at 9.09% and now say because they have taken so long the only way to fix it is by paying the difference in the correct rate of 8.85% to 9.09%. They have promised that this will go onto the home loan immediately, but is this really a fix for us or the banks way of getting us off their backs ?
GardeningTips
I recently got a home loan and paid $440.00 to lock in an interest rate at 8.85%. 2 weeks after settlement I found out that my interest rate was locked in at 9.09% but the repayments had been calculated at 8.85%. I spoke to the bank numerous times and was told that the interest rate would be fixed. After many weeks and many more calls from me I was advised that the interest rate cannot be fixed but the manager offered to calculate the difference and pay it into our mortgage 6 monthly, but to do this I would need to pay $1500.00 (the difference over the 2 year fixed rate between 8.59 - discounted rate - and 9.09%.) We declined this. The bank has now come back and advised us that they are prepared to credit the mortgage with $1400.00 which is the difference in the interest rate between 8.59 & 9.09%, they will do this as soon as we advise that is the way we want to go. As this is our first mortgage I cannot see if this is any benefit to us. We need to get back to the bank with the outcome but are not sure if we should accept this. The bank has told me that as they left it more than 14 days to fix up the mistake, they now physically cannot put it back to 8.85%. Please advise which way we should go or if there is someone who will help me outside of the bank that we do not have to pay for.
Sorry I should have clarified – I am in Australia – And this was before the interest rate decrease. We paid for it to be locked in at 8.85% for 2 years. A mortgage (Not sure what type sorry). The loan docs say 8.85%.
we paid for it to be locked at 8.85% but NAB locked it at 9.09% and now say because they have taken so long the only way to fix it is by paying the difference in the correct rate of 8.85% to 9.09%. They have promised that this will go onto the home loan immediately, but is this really a fix for us or the banks way of getting us off their backs ?
GardeningTips
