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Premium Select Home Loan variable rate NOT varying for a year

Posted by gbart17 gbart17
Message 1 of 6 610 Views

I am on a Premium Select Home Loan which i understand is a variable home loan product yet the interest rate that is show online when I log in and what has been displayed in my eStatements says it has not changed in a year. Why is that? And where can i find the interest rate applied to my interest every month? I have been consistently been paying nearly double my required monthly minimum and have also consistently grown the offset transaction account by the way.

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Re: Premium Select Home Loan variable rate NOT varying for a year

Posted by DanaeC DanaeC
Message 2 of 6 604 Views

Hi @gbart17, thanks for getting in touch.

 

Making excess repayments to the loan will not amend the specific rate of interest charged, it will though increase your surplus/available balance and therefore decrease the dollar amount of interest being debited. If there were any changes made to your interest rate, these would be advised via a Statement of Position, which would be posted to you.

 

If you would like to have a look at your current rate of interest, we'd be happy to get in touch. Please send us your full name and best contact number to forum@bankwest.com.au.

 

Thanks!

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Re: Premium Select Home Loan variable rate NOT varying for a year

Posted by gbart17 gbart17
Message 3 of 6 588 Views

Hi DanaeC, thanks for replying. I do understand excess repayments do not amend the interest rate. My issue is that I cannot replicate the computation fo the dollar interest month to month. The current trend looks strange given the factors I am aware of. For example, the debited interested for the past month is ~$50 larger than the debited interest the previous month, despite my extra repayments larger this month than the last. I have also put in more in the offset account this month than the last. Modeling that scenario in a standard worksheet home loan calculator shows the dollar interest would be smaller in this month if the interest rate did not change however that is not so. Would you be able to shed more light into how the dollar interest is computed every month? 

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Re: Premium Select Home Loan variable rate NOT varying for a year

Posted by DanaeC DanaeC
Message 4 of 6 580 Views

Interest is calculated on the current balance of the home loan (inclusive of any offset amounts) at any given time @gbart17. The available funds in the account (and also in the Offset accounts) are considered as "excess" and therefore no interest is charged on this amount.
 

The interest charged each month is different due to the number of calculated days. For example, lets say that your interest raising date is the 1st of the month. March had a total number of 32 calculated days, including Weekends and/or Public Holidays, whereas February had only 28 calculated days. As interest is calculated daily and charged monthly, the amount debited will vary month to month. Even if your offset and/or surplus balance is higher, the number of calculated days was also higher, resulting in a larger dollar amount being charged.
 

If you would like us to process a calculation based on your account, you can either give us a call on 13 17 19, or log in to your Online Banking (from a PC) and select the "Message us Now" tab. For your convenience, these services are both available 24/7.
 

Thank you.

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Re: Premium Select Home Loan variable rate NOT varying for a year

Posted by gbart17 gbart17
Message 5 of 6 575 Views

Thanks Danae. This pretty much answers my question. I will drop a message online to request for a detailed calculation.

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Re: Premium Select Home Loan variable rate NOT varying for a year

Posted by DanaeC DanaeC
Message 6 of 6 574 Views
My pleasure @gbart17, have a great evening and let me know if you require any further assistance.

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