All Topics / Finance / Interest rates increased

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  • Profile photo of keikokeiko
    Join Date: 2008
    Post Count: 513

    A question possibly for a banker or broker

    I have a few loans with 1 bank on variable and I have noticed that when we had interest rate increases last year that each loan got an interest rate increase on different days 

    so like 1 loan was incresed on the 15 of November and the others 25 November

    Now why is that? I would have thought they should increase on the same day

    Another thing I have noticed for a long time is the amount taken each month is always different from the amount that should be taken
    my calculations are correct, some months it may only be 28 days before they take a payment the next month it might be 32 days when they take a payment but the figures are wrong 
    I calculate on a dailey bases but there still out sometimes by $100 there way   

    Profile photo of v8ghiav8ghia
    Join Date: 2005
    Post Count: 871

    Hi Keiko,
    Hope this helps. Obviously the loan with the different amounts is interest only – so depending on the lender, this may be charged on the same date each month, (in which case you should only ever have two different amounts depending on how many days are in the month, with of course Feb being th exception) where others charge it on the last day or last business day of each month, which means the figures can alternate quite a bit, depending on where the weekend falls date wise etc. Perfectly nomal. On a P&I loan, the payment is always the same – but if you drilled down into it you would still find the interest amount componant of this varies the same .

    With the other question, more than likely it is because you have a different loan product with the same lender. Some strangely alter the rate on one type of loan product a t a different time to their others – for example a base rate style product, as opposed to a standard one – although this is more likely when rates go down rather than up.

    Profile photo of keikokeiko
    Join Date: 2008
    Post Count: 513

    Thanks V8

    Yep the loans are interest only, 1 month the money might come out on 17 jan the next it might be 20 feb then maybe 18 march so then i work out how many days between 17 and the 20th which may be 34 days then lets say I am charged 10% for easy work out and the loan is $100k now based over 34 days this works out to be $931.50 and the bank takes say $1,020 then the next month I may have a very similer thing happen, and even if its the weekend so I add an extra day or 2 the figures still don't add up, it may be out by $10 and then the 3rd month they may take less out than they should but over the last 6 months they have taken more than they should per loan, so there winning by a couple of hundred per loan, I don't mind if they work it out and take it of each 6 or 12 months but I am wondering if there doing this to everyone they would make a large fortune.

    it seems to be when my rates were going up is when they have a week or 2 before the others follow

    Ile keep watching and ask the bank in a few months and get them to pay me with interest, well try anyway

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