FACT #1 - Banks Make Mistakes
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Recently Three of Australia's Largest Banks were caught overcharging 445,000 clients more than $57 million. Worst still, most clients didn't even realise it until the banks refunded their money.
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An Error On Just Your Loan is unlikely to be noticed as it is too small for the bank to pick up. If you don't uncover it, the bank will keep your money.
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A Simple Typing Mistake or Computer Glitch is all it takes - a 1% interest rate error on a $300,000 loan will cost you an extra $75,267 over 30 years.
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FACT #2 - Banks Are Driven By Profits
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The Bank Will Charge You As Much Interest As Possible and your mortgage repayments have been set up to maximise the interest you pay over the life of your loan.
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The Bank Will Make You Repay 2 to 3 Times the amount you borrow if you don't make extra repayments on your mortgage - Borrow $300,000 and you will repay more than $755,000 back to the bank.
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After 22 Years of Repaying Your Mortgage, you will still owe the bank more than 1/2 of the original loan amount. On a $300,000 loan, despite paying the bank $450,000 in the first 22 years, you will still owe the bank more than $151,000.
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