Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.

View this topic in a long page with up to 500 replies per page Create new topic
1 | 2 
6735 posts

Uber Geek
+1 received by user: 436

Trusted
Subscriber

  Reply # 516612 4-Sep-2011 23:08 Send private message

What service is it you need? What are they not doing? I don't interact with my bank over my mortgage, I just pay it each month.




Asus eee pad transformer
iPod 2G
Windows 7 PC
Lots and lots of Nikon camera gear

1197 posts

Uber Geek
+1 received by user: 92

Subscriber

  Reply # 516645 5-Sep-2011 07:53 Send private message

Regs: Dont assume that a break fee is straight forward.  They really do differ between banks, so its worth asking them how it is calculated *before* signing for that new mortgage - especially if there is likely to be some volatility in the rate market.  


I have seen one bank's formula for calculating its ERC's - and it is a very compex formula, even for people who understand such things, involving net present value/discounted cash flow calcs. And Regs is right - all banks use a somewhat different approach. The main bad point about all this is the customer cannot check the calculation of the fee themselves - way too complex, unless you use Excel or have calculator like an HP 12C that has built in functions, and even then beyond most of us.

4741 posts

Uber Geek
+1 received by user: 117

Trusted

  Reply # 516694 5-Sep-2011 09:43 Send private message

Regs:
At the same time a colleague who had a similar mortgage to me also considered breaking his fixed term.  As it turned out his bank (w?) used a different ERA formula and it was going to cost him nearly 3 times as much as it cost me to break the term.  For him it didnt make sense to break it.  He also switched banks at the end of his mortgage.


Dont assume that a break fee is straight forward.  They really do differ between banks, so its worth asking them how it is calculated *before* signing for that new mortgage - especially if there is likely to be some volatility in the rate market.  


+1 Major plus one on this.  Kiwibank were apparently very bad for this a while back, and Westpac were rough as well, from my own personal experience.

Just as a word of warning to any others (not the OP of this thread) if you can foresee a possible need to move house/change banks, then pay very close attention to how your bank calculates it's 'break fee'.  Things like married, no kids, 2 incomes etc mean you should consider a smaller fixed period in case you have kids, and drop to one income in 2 or 3 years time etc!Wink

1 | 2 
View this topic in a long page with up to 500 replies per page Create new topic




Twitter »
Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:




News »

Trending now »
Hot discussions in our forums right now:

Does NZ need better gun laws?
Created by mattwnz, last reply by heylinb4nz on 2-Sep-2014 16:23 (104 replies)
Pages... 5 6 7


Warning: Rage Ahead - Campbell Live and childhood poverty
Created by kawaii, last reply by hangon on 2-Sep-2014 16:33 (82 replies)
Pages... 4 5 6


What tyre brand/model to look at ?
Created by Mark, last reply by Mark on 2-Sep-2014 15:14 (29 replies)
Pages... 2


VideoEZY OnDemand
Created by Andib, last reply by networkn on 2-Sep-2014 14:30 (57 replies)
Pages... 2 3 4


Judith Collins: I am resigning
Created by Presso, last reply by gzt on 2-Sep-2014 11:42 (109 replies)
Pages... 6 7 8


Cirque du Soleil Cellphone Hijack
Created by myopinion, last reply by PhantomNVD on 1-Sep-2014 18:01 (21 replies)
Pages... 2


Orcon Global Mode launched
Created by freitasm, last reply by shk292 on 1-Sep-2014 11:32 (132 replies)
Pages... 7 8 9


Lightbox press event release
Created by freitasm, last reply by IcI on 30-Aug-2014 17:54 (562 replies)
Pages... 36 37 38



Geekzone Live »
Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.