Changing to Fixed Rate Loan - any catches?

Hi. Sorry. I’m not sure what you mean.

 

Oh my gosh guess what. I have been approved for the 6 month deferral.

All I had to do was fill out this online form. The bank didn’t even ask me to jump through hoops. I thought I would have had to send them back all this paperwork.

This will help me to build up my savings buffer in my offset against my PPOR


Thank you for your request for financial hardship assistance.

We have approved a 6 month deferral on your home loan(s) and your new agreement is in place. We will send a letter to the address we have on file for you, outlining the details of your new arrangement.

What you need to know

• If applicable, any direct debits or automatic payments to your home loan have now been cancelled.
• You can make repayments any time if you wish to minimise interest and the extension of your loan term.
• Any available redraw you have will be drawn on first during the 6 month deferral period. If you need to access your redraw during this period, transfer your available redraw to another account now.
• Interest and fees will continue to be charged monthly to your account - this will result in your loan balance increasing over the 6 months.
• At the end of the 6 month period, your current repayments will start again and we'll extend your loan term as necessary to ensure that your repayments won't increase as a result of this deferral.
• The increase in your loan balance and any extension of your loan term means that you may be making loan payments for a longer time and pay more interest over the life of the loan.
• You may see an arrears balance on NetBank or on the CommBank App. Don't worry, this will be fixed by us, without adversely affecting you.

What you need to do

This arrangement has already been applied to your account.

If you have set up payments to your loan through NetBank or other automated payments, you should review and update them if necessary

Your payments will re-commence automatically in 6 months. We'll be in contact to remind you beforehand.

Thank you,

CommBank

 

There would be too many people wanting this for them to check.

 

True. Yes good point. Phew. It gives me a chance to build my savings up again and then I’ll get another 2nd job after corona virus is under control.

I even asked if I could go Interest only for a while but they knocked it back. I was planning to fix my loan. I’m glad I didn’t because this is a better option for me.

 

Looking at it from another angle, this is a form of stimulus that doesnt add to government debt.

 

Do you accept drawings of spiders as payment?

 

Lol I’m not sure I getya.

Lol it wasn’t as easy as I thought. I tried the other day. I had maybe 50% accuracy. Was fun though and a new experience. Lol whilst I’m a newbie at it I better keep my day job.

 

Bad joke

And Now For Something Completely Silly – HITC

 

Fixing the loan would have meant less interest capitalized.

 

Yeah I know. Thanks.

I think I have the best outcome. I’m happy to defer. Enables me to build up my cash reserves. If I could I’d sell but I can’t as it’s value has gone down 50 k 75 k. So the savings will help me get through the next couple of years in Perth. Hopefully Perth will rise again in a few years.