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  1. #21
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    Default Home loan payments - sorry, but do you think this is right??

    Yeah that sounds identical to our loans. And if you have more than your monthly repayment in the account the interest 'payment' shouldn't make a different and you will be fine for your January payment.

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    emma26  (28-12-2012)

  3. #22
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    Quote Originally Posted by waterlily View Post
    I assume ours is the same. I'm not 100% sure though. We pay extra just to pay it off a tiny bit quicker not for any other purpose.
    yes we pay a little extra just so we might pay it out a but quicker in the longrun . dont think it would let us skip a payment

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    Thank you so much for your help Nancy. I cannot understand why the bank has put me under so much stress over this. I was only doing what the bank advised me to do earlier in the year so we could make the January repayment. I would hate to think that all the money we put extra into our home loan for the sole purpose of making the jan repayment (to have sitting there in the re-draw .... and where we could not get tempted to touch if it was left in our savings account) was all going to be gobbled up in interest alone.

    All (apart from 2) of the people i spoke with were so heartless about it all, i was even crying on the phone to them, as no one wants to fall arrears on their home loan especially when you shouldn't be in the first place. We have always considered our home loan as number 1 priortie (sp?) and we make more than the minium repayments every month... may not be alot, but it's more than what we have to pay.

    Now i will wait and see if they charge my interest to the available redraw and take what was orginally my monthly repayment.

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    Default Home loan payments - sorry, but do you think this is right??

    Yeh I can understand your frustration. If the entire amount was extra that you put in then it should cover your payment. I do it all the time. I pay a bit extra each week then when I was short for money I didn't make a payment and the extra I put in covers it. IMO you should be fine

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    emma26  (28-12-2012)

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    Default Home loan payments - sorry, but do you think this is right??

    I hope I'm right - but it does sound similar to ours and provided you have enough in the account at the time your repayment is due them you should be fine. The interest calculation doesn't get deducted except on paper by increasing the amount owed on the loan balance.

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    We used to have money in our re-draw but we couldn't use it to pay the monthly repayment, it was simply used to offset the interest and therefore would lower the interest (if it's a variable rate). Ours was a direct debit so I guess it didn't have the flexibility but as far as I'm aware we couldn't use the re-draw anyway.

  10. #27
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    You see, the thing is that i'm told all different stories from the bank. When i called them earlier in the year, i was told that i had enough already in my re-draw to "skip" a fortnights payment, however i didn't because i was wanting to "top up" so i would have enough in the redraw to pay for january 2013 payment (monthly payment).

    Now i am told that the money i have added to cover for the jan repayment over the course of time is there and i am ahead of my loan but it will be pretty much gone when interest is added on 31st dec.
    So my issue is not whether i can use my redraw to pay for the monthly repayment, but its to do with the fact that i am being told that the available redraw i have will be taken once im hit with interest. It's never worked like this before. I have spoken to so many people, who seem to think that i'm a mortgage spealists and cannot explain it to me in full detail..
    Maybe if it was explained to me better than this, i might understand - how ever it still seems completely wrong.


    So either the person i spoke to earlier in the year (who advised me to do it this way) has completely got it all wrong and there for the money i was adding was simply going straight to the loan - however still doesn't make sense because it's there in the redraw ... and as mentioned i have to have a minium of $2000 to go into the bank and draw it out, but i have always been told i can use it as a repayment if there is enough.

  11. #28
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    OK, just got off the phone to the bank AGAIN, and this time things made more sense (got the guy to explain everything in finer detail).

    My sheduled balance is higher than my Debit balance (which is what it should always be).
    Apparently my re-draw is NOT an available balance (which is the total between the sheduled and debit balance).
    My interest DOES come out of the "redraw amount" (still confused about that part though because i only ever see this balance go down when a monthly payment is made) however im so over trying to understand this part that i'm just going to drop it.
    BUT even after the interest comes out, i will still have enough money in there to cover the monthly repayment in January. BUT it's only because, for the past several months i have been paying my monthly repayments at the old interest rate - when interest rates went down, a review was not done on my home loan account and there for i was paying the higher interest rate instead of the new lower one. So i was paying extra ONTOP of already paying slightly extra.

    So i now have to keep an eye on my home loan and see if they automatically take my repayment in the "redraw" as 1 minute the guy said NO and the next he was saying YES it will get taken from the amount in there (providing it's enough)

    All im looking for is a straight answer and i cannot even get that.

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    Default Home loan payments - sorry, but do you think this is right??

    So confusing!

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    Default Home loan payments - sorry, but do you think this is right??

    Quote Originally Posted by kw123 View Post
    We pay extra into our mortgage every month and can't use it towards regular payments. It's quite complex but that is definitely true for us.

    Sorry
    Same. We pay an extra $1500 per month on our loan but it can't be used for future payments. Stupid I know!


 

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