Fixed Loan extra payments

Discussion in 'Loans & Mortgage Brokers' started by Triton, 22nd Mar, 2020.

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  1. Triton

    Triton Well-Known Member

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    Hi, quick question.

    I have a CBA 2 year interest only fixed term loan with 13 months to go, with monthly commitment of 1200.

    I believe that CBA allows extra 10K repayments for each year of the fixed loan term without incurring early termination fee.

    If I take advantage of this, can I pay off my fixed term sooner (in ~2 months time), assuming I pay 10K for the first year (finishing end of this month) and 10K next month., or does the extra repayment simply make the principal less?
     
    Triton, 22nd Mar, 2020
    #1
  2. wylie

    wylie Moderator Staff Member

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    Your fixed term is just that... fixed.
     
    wylie, 22nd Mar, 2020
    #2
  3. Morgs

    Morgs Well-Known Member Business Member

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    Extra repayments are extra repayments over and above your loan schedule... paying more won't bring forward the expiry
     
    Morgs, 22nd Mar, 2020
    #3
  4. Triton

    Triton Well-Known Member

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    Got it, so it will bring the principal down?
     
    Triton, 22nd Mar, 2020
    #4