repayment amount - getting ripped-off?

Any general questions you might have in regards to loans and finance.
Post Reply
MsCutecumber
Posts: 4
Joined: Sat Apr 10, 2010 12:31 am

repayment amount - getting ripped-off?

Post by MsCutecumber »

Hi Otto,

I have a low-doc loan of $173K, 7.64%, min-repayment $638f/n, Macquarrie. This loan was taken in Dec 2006 on $180K for property value of $264K that time which I do believe that it should be up to $300K+ by now.

The calculation is still using $180K on 30 years with (new rate) 7.64% to get repayment of $1275.89 per month. If i devide by 2, it will be $638f/n.

But in my appliaction I want it to be f/n so it should be $588f/n????

Is this the right way to calculate,
1. using $180K not $173K?
2. devide by 2 to get f/n?
3. i am doing f/n with the more than min-repayment which should be looking as extra repayment. So??
3. do i am getting ripped-off?

Please help.

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: repayment amount - getting ripped-off?

Post by Otto Dargan »

You should work out the repayments on $180,000 over 30 years as this was the original loan amount. As for calculating fortnightly repayments many lenders just get the monthly repayment and divide by 2. This is not the true fortnightly repayment and so over the course of a year you are actually paying more than if you paid monthly. It is for that reason that paying fortnightly saves you money, you are just paying extra!

For example a $1,000 / month payment divided by 2 = $500 / fortnight.

$1,000 / month x 12 = $12,000
$500 / fortnight x 26 = $13,000

As you can see in this example all that was being done was to pay an extra $1,000 p.a. The true fortnightly payment should have been $461.54 ($1000 / month x 12 divided by 26). The extra you are paying comes off the balance so it isn't a problem.

I doubt Macquarie are ripping you off by miscalculating the repayments. I know Macquarie very well and have dealt with many Macquarie low doc loans and have never seen them rip someone off in that way.

That being said they are charging you a much higher rate than is available elsewhere. Even on a low doc basis! If you have not missed any payments in the last 6 months and have a clear credit history then please call us on 1300 889 743 and I have no doubt we can save you a small fortune!

Macquarie has had problems securing cheap funding and as a result anyone with a Macquarie low doc loan is now paying at the very least 1% more than other low doc loans available, and in many cases as much as 2.5% more.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

MsCutecumber
Posts: 4
Joined: Sat Apr 10, 2010 12:31 am

Re: repayment amount - getting ripped-off?

Post by MsCutecumber »

"If you have not missed any payments in the last 6 months and have a clear credit history then please call us on 1300 889 743 and I have no doubt we can save you a small fortune!" - No problem at all.

BTW I have found some lenders with a very attractive interest. Any chance that I can move to full doc in order to get a better rate?

or what is the best low dos rate available - I just want a simple one with low rate.

Thank you.

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: repayment amount - getting ripped-off?

Post by Otto Dargan »

Yes we may be able to switch your loan to a full doc to enable you to get a better rate. Be careful as lenders assess self employed income in very different ways. Some such as ING look at two years tax returns then use the average of the two years. If your income has risen more than 20% then they will take 120% of the previous years income. Other lenders may use the most recent years income.

When searching for the best loan it is best to work out which lenders can approve your loan and then to work out which one has the cheapest loan. Otherwise you may waste a lot of time applying for loans only to not get them and destroy your credit file in the process!
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

MsCutecumber
Posts: 4
Joined: Sat Apr 10, 2010 12:31 am

Re: repayment amount - getting ripped-off?

Post by MsCutecumber »

Thanks Otto,

I am now on the 8.14% of 173k with replayment of $1301 per month.... ummmm

I am currently working as a Tutorial Lecture at a uni (casual) since 20 Feb 2010 earning about $700f/n

I am getting my previous Tax return done - to up to date anyway

I am still running a small business since oct 2004 - that how I have got the low-doc loan in dec 2006

Now I have a chance to re-finance with ANZ Simplicity Plus (6.71%) on the basis of a loan under 80%. However the existing fees would be about ~$2000 + $600 application fee from ANZ + $200 another fees from ANZ.

I really like ING and would be good to get the loan from them. Do you think I have a chance?

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: repayment amount - getting ripped-off?

Post by Otto Dargan »

ANZ policy is that you must have been casual for a minimum of 1 year before they accept your income. This is only made an an exception if you borrow less than 60% of the property value. At 80% both ANZ and ING would decline your loan based on the length of time in your current position.

ANZ pays commissions to brokers so why your current broker is charging $2,000 I do not know? We can get you a loan with a major lender without these fees.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

MsCutecumber
Posts: 4
Joined: Sat Apr 10, 2010 12:31 am

Re: repayment amount - getting ripped-off?

Post by MsCutecumber »

Sorry - that was exit fees from the bank (.75% from original loan $180k + $650)

If I only want $150k which is only 50%, any lenders could do that?

Thanks

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: repayment amount - getting ripped-off?

Post by Otto Dargan »

Sure, feel free to call us and we can help to find you the most suitable lender. ANZ is one of the lenders that we can assist you with.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Post Reply