I am looking at possibly paying out my fixed rate loan early with the CBA in about 4 months time. I wanted to look at the various scenarios regarding what penalty interest would be payable. I asked the CBA if they could give me the calculation I would need to do to work this out. They refused and said they could tell me what penalty interest would be payable if the loan was paid out today but even then would not tell me how this is calculated. Does anyone know how the calculation is done?.
ned kelly
Most lenders or should I say call center personal do not know how it is calculated. It is done via the computer and is very complex. They use the rate you are on, what the rate is now and what they may have earned by you staing on that rate. If the current rate is higher than what you fixed it for you may receive no penalty or even a refund(ha ha) If the rate is lower than what you have fixed it for then your penalty will be higher. The penalty should not be that much with only 4 months to go. Contact me on [email protected] if you have any further questions.
The formular may be listed in your mortgage documents.
Terryw
Discover Home Loans
Parramatta
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Most lenders should have it in the Letter of Offer documentation.
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