Where do I find Penalty interest rate?

Viewing 5 posts - 1 through 5 (of 5 total)

Yiima
Member
@yiima
Join Date: 2009
Post Count: 15
June 26, 2009 - 5:05 am
Today suppose to be my settlement day….
However, my loan hasn't been approved yet though valuation has been ordered last Wednesday.
My conveycer told me 8% penalty rate might apply to late settlement. I just looked through my contract, nowhere mentioned this rate.. Seems each party is keeping this quiet, no on has brought this up except me.
Vendor did not do the extention in written either. They verbally agreed and leave the contract as it was.
Anyway can point to me where should I look?
Many thanks
Edit: I'm in Adelaide
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 26, 2009 - 5:18 am
May not show on the Contract as if there is no rate shown the default rate will normally apply.
This will vary from State to State.
Richard Taylor | Australia's leading private lender
coolwater
Participant
@coolwater
Join Date: 2009
Post Count: 1
June 26, 2009 - 9:35 am
Thanks for that info Richard, but could you point out where I could find the default rates for NSW?
Cheers,
Chris
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
June 26, 2009 - 11:28 am
Check the Law Society NSW website.
Richard Taylor | Australia's leading private lender
Linar
Member
@linar
Join Date: 2004
Post Count: 567
June 26, 2009 - 12:40 pm
Clause 2.1.6 defines the default rate as being 5 percentage points above the current RBA cash rate. I think that the current cash rate is 3%, which makes the default rate 8%.
Cheers
K