Beware of selling your ozzy house on a fixed rate loan
Feb 11th 2009, 5:44 am
#61
Forum Regular
Joined: Nov 2008
Posts: 43
Re: Beware of selling your ozzy house on a fixed rate loan
We have just been conned out of $41,000 by the Commonwealth bank in exit fees for selling our house at the end of the first year of a 5-year fixed rate loan. Because of the drop in interest rates, if the bank now relend that money it would be at a 4% lower rate (due to drop in interest over the last 12 months)... so... WE have to pay the difference :curse:
Feb 11th 2009, 6:41 am
#62
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Posts: n/a
Re: Beware of selling your ozzy house on a fixed rate loan
The charge you will pay if you pay early is: z * p/l *12 /x
Then, when you do want to settle, it becomes $30,000.
"Why the difference" you ask them, and they say "We didn't expect rates to drop"
Feb 11th 2009, 6:48 am
#63
Canuck/Aussie
Joined: May 2006
Location: BC, Canada
Posts: 4,547
Re: Beware of selling your ozzy house on a fixed rate loan
Here's the page from our Westpac contract. We have a variable, but the page is still in there. Much better examples than the Macquarie one.
There was a second page too but it was just another example.
There was a second page too but it was just another example.
Feb 11th 2009, 8:56 am
#64
Forum Regular
Joined: May 2008
Location: Newcastle, NSW
Posts: 67
Re: Beware of selling your ozzy house on a fixed rate loan
We have just been conned out of $41,000 by the Commonwealth bank in exit fees for selling our house at the end of the first year of a 5-year fixed rate loan. Because of the drop in interest rates, if the bank now relend that money it would be at a 4% lower rate (due to drop in interest over the last 12 months)... so... WE have to pay the difference :curse:
Really sorry to hear about this - it's a huge amount to lose. We went through a similiar scenario in NZ (which is still rumbling on
) and (like has already been said in this thread) the only chance there seems to be of fighting it is if the contract did not contain adequate info/warningsPlus, can't help thinking that there was more of a chance of fighting the banks when it was happening every so often, not so likely to gain ground when a there is a great flood of such cases as there are now - banks have too much to lose by making any concessions - unless they could be faced with some kind of class action that is....
Feb 12th 2009, 9:35 pm
#65
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Joined: Jul 2004
Location: Adelaide
Posts: 497
Re: Beware of selling your ozzy house on a fixed rate loan
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