Deferring repayments

Discussion in 'Loans & Mortgage Brokers' started by styereye, 29th Mar, 2020.

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  1. styereye

    styereye Well-Known Member

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    It looks like my work hours will be cut very soon. I'm calling my bank tomorrow to request the 6 month deferral. Can anyone help me work out how much interest they are likely to add to my loan.

    I refinanced earlier this year so currently have 29 years 9 months to go. My loan outstanding is $388,121. My rate is 3.03 with CBA.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    whats the monthly interest rate? That times 6 plus a bit extra.

    You could work it out using the amortisation schedule in excel if you want an accurate figure.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Keep in mind CBA might extend the loan term too
     
  4. styereye

    styereye Well-Known Member

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    My rate is 3.03%. How do I use the Amortisation schedule?
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Download it and put the numbers in
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sorry word mistake, i mean 'amount' not 'rate'
     
  7. styereye

    styereye Well-Known Member

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    It's $1733 a month
     
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Quoted that they will actually do that to maintain max repayments

    Good responsible lending

    ta
    rolf
     
  9. Niche

    Niche Well-Known Member

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    Surely that is your total monthly payment not interest charged. I think what @Terry_w is saying is have a look how much of that payment is interest (maybe around the $1000 mark) and then times that by 6 as there will be 6 months interest added so they would basically add 6 grand to your loan using these very simplified figures
     
  10. Lacrim

    Lacrim Well-Known Member

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    What do you mean Terry? CBA are deferring for 6 months and adding another 6 months additional term as well??
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I recall reading that they will add an extra 6 months to the term.
     
  12. paulF

    paulF Well-Known Member

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    Try link below

    FinAid | Calculators | Cost of Interest Capitalization Calculator

    Based on your numbers above :

    With the interest capitalization there are 348 payments of $1,702.98 , for a total payment of $592,637.04 (including a total of $198,613.74 in interest plus $5,902.30 in interest accrued during the deferment period).

    Thus the total amount paid with interest capitalization is $592,637.04 , or $2,997.45 more than would have been paid without capitalization. That's an extra $0.01 for every dollar borrowed.

    Calling the banks and asking them is your best bet.
     
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