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My Fixed Loan rate has increased

Discussion in 'Property Finance' started by New Town, 21st Dec, 2015.

  1. New Town

    New Town Well-Known Member

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    QLD & NSW
    Hi all

    Is this across the board? I expected the variable loans to go up with the APRA thing, but I also have a fixed rate loan for an IP. I've received a letter from the lender saying its going up 0.2%.

    And yes the mortgage contract says they can increase the rate etc

    Thanks
     
  2. pinewood

    pinewood Well-Known Member

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    What's the point of fixing a loan if the contract still allows rate increases? Is this normal?
     
    datto likes this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Did the rate increase before settlement?

    A fixed rate means the rate cannot increase. but the rates are not determined until the day of settlement.
     
    larrylarry likes this.
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Is the rate already fixed, or is it about to be fixed.

    They can't increase the rate once it is fixed, but before then they can do what they want. The letter could also be referring to the variable rate after the fixed period.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Nope - haven't heard of it happening.

    Could there have been a 20 bps jump just before your loan settled?

    Cheers

    Jamie
     
  6. New Town

    New Town Well-Known Member

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    QLD & NSW
    Gents

    Thanks for the info. As an update the lender says the letter informing of the rate increase was a mistake o_O
     
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  7. Chilliblue

    Chilliblue Well-Known Member

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    Happened once and took a few weeks before the rate lock documentation was honoured.
     
  8. Omnidragon

    Omnidragon Well-Known Member

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    Let me guess, you're with a small bank.
     
    New Town likes this.
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    but only since you contacted them :)

    ta

    rolf
     
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