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Mortgage blues - Suffering From Elation
A Survivor's Tale
Mortgage blues
FTR, my mortgage is with Homeside Lending. There's been a big fuss in the media about how interest rates are starting to plummet in Australia, excellent news for anyone with a mortgage... EXCEPT ME, because Homeside hasn't passed on a single one of the rate cuts yet. At present time, my interest rate is 8.94%.

I pay $500 fortnightly, far above my minimum repayment, and once per month the interest gets taken out - it's just short of $500 itself. So every second payment I make is absorbed completely. I know this is par for the course with a mortgage and, despite the fact that I can't live in or rent out my property, I'm still doing better than most, but good god, people are whinging about NAB taking so long to adjust it's rate (they finally did so in the last day or so) and there's still a group of Homeside customers getting anally raped as we speak! :\

Word has it we'll get a 0.79% cut on October 31st - lovely and all, but interest is calculated daily, so while Homeside drags its feet we're all still getting reamed. The best way to cope with this may be to switch providers. Now that I'm earning a whole lot more, and have a history of regular, above-the-minimum payments behind me, I might be able to afford to pick and choose my mortgage provider and switch to someone with a far more reasonable rate. I shall have to do some investigation... I'm willing to bet there'll be nasty fees involved.
5 have fought ~ fight the power!
raphstar From: raphstar Date: October 24th, 2008 03:00 am (UTC) (Link)
The guy we are going through is a mortgage broker from Mortgage Choice and we have found him to be pretty good with info on this sort of thing. My other friend sings the praises of Aussie Home Loans broker for the same thing - would you like the info?
tania From: tania Date: October 24th, 2008 05:03 am (UTC) (Link)
Sure, that'd be great! :) How much does he generally charge?
radam From: radam Date: October 24th, 2008 04:15 am (UTC) (Link)
I was under the impression that if you make above the minimum payments set out in your mortgage agreement contract thing, it can affect your credit just as badly as not being able to make payments at all. I don't know why I know this, or if it's even true, but it just popped in to my mind as I read this.

tania From: tania Date: October 24th, 2008 05:02 am (UTC) (Link)
I'll have to research that! Logic suggests that one reason it could affect the ol' credit rating is because the whole reason banks love lending money is the interest they rake in while you're slowly paying it off. FAST repayments = far less interest profit for bank = bugger off and borrow someone else's dosh. Hmm.

Most mortgage contracts actually have a FEE for paying it off early.
c_eagle From: c_eagle Date: October 25th, 2008 09:35 am (UTC) (Link)
I sure hope you get that rate cut!.... I had a variable mortgage which fluctuated between 5.5% and 7%
5 have fought ~ fight the power!