bridie

We have two mortgages with ANZ, a Moneysaver which is currently at 8.77% and a standard variable rate at 9.12%.

However, looking at ANZ's home page and their advertised rates for variable are 8.57% and Moneysaver 8.17%

So my question is... why are we being charged a higher rate? Is this usual?

I have queried it via their secure mail but of course takes time for them to reply...!

Nu-Shooz

I am with Bankwest and was getting charged 9.18% on my morgage, when they advertise 8.6%.
So i rang them and asked why!!!! They had no answer and said they would change my rate just like that. Weird. If you don't ring them, it won't change.
So after a year of getting ripped off at 9.18 i now pay $100 less a month just over a phone call.

MartinH

The rates have just come down so you just need to ring and ask.

Don't both with email

E3only

Many get ripped off - just call and they will adjust the rate straight away.

Currently BankWest is offering a 2 year loan (I think called Rate tracker) reverting back to std variable the rate is 7.55% (after the recent reduction) but they are still to change their website - it says 8.35%...

Just call and they will reduce immediately.

I think you are getting a loan that you have not asked. For example you may have offset account when you don't know one..something like that...

teza

To quote Kochie from Sunrise "Many in Oz don't realise that rate hikes hit automatically on your loan but for rate cuts you will have to contact your bank and ask them to adjust that to your mortgage...."

E3only

BankWest offer auto adjustment....

EvannTel

Interesting....

Just checked my Westpac mortgage and it doesn't say what rate I'm on! However the most recent interest calc is down on the previous - more than I;d expect from just the small drop in capital.

When banks seemingly leave "rates" the same - is this actually true or do they leave repayments the same but lower interest (hence helping you pay off quicker).

asprilla

no, what he meant was that when banks increase rates, they automatically increase your repayments accordingly.

But when they drop rates, banks usually do not drop the repayments back down - you will have to do this yourself by phoning up and asking them.

the amount of your regular repayment, and the interest rate being charged by your bank, are two seperate (but related) things.

If you find out that your bank have been charging you too much interest, then the bank should (a) reduce your interest rate to the correct level, and (b) pay you a credit for the period where you have been paying too much interest.

bridie

might give them a ring then.....

hoofie2002

I always thought BankWest adjust the rate on your mortgage automatically. It's the repayments they don't change downwards unless you ask them [I've left mine at the higher rate to pay the mortgage off faster]

E3only

Ok - slight misunderstanding.

When the rates go down (RBA) and if the banks decide to lower it, the interest rate lowers on the effective date (most of the banks with the current 80 bps reduction auto adjustment to interest rates as of 20th Oct)

What I was refering to was the auto adjustment to downward revision in monthly mortgage payments.

My friend has a mortgage with NAB. He called up when the interest rates were first redueced and NAB told him "your repayments will be adjusted after 1 year from the date the interest rate is reduced" - so interest charged to the mortgage is adjusted straight away b ut your repayments are kept as if for 12 months.

Now Bankwest on the other hand reduced both my interest and repayments immediately !!

bridie

hmmm, ok but my first letter stated the rate would be changed in sept... unless the info on the web is just for reference and it doesnt matter if its wrong?

E3only

It's a bit worrying why the advertised rates would be lower than what you have on the mortgage. I can only imagine that you may not be comparing apples with apples i.e. as i said before you might have a superior mortgage product and may be looking at a different product on the net...

IF however you are confident it's the same product then I suggest call them straight away and ask what the...??

moneypenny20

But surely if you can afford to continue paying the amount you're currently paying, it's sensible to continue. That's what we used to do in the UK. Helps you pay off the loan quicker and you don't feel it.

bridie

we overpay, my query isnt with the payment amount but with the interest rate they've been charging.....

i will phone them tomorrow and report back!