Is My Bank Behaving Badly?

GOCAT9 on 11/06/2023 - 21:19
Last edited 12/06/2023 - 13:08 by 1 other user
  1. I had a fixed-rate mortgage with a bank with "a maturity date of 10 June 2023".
  2. Up until 9 June 2023 inclusive, accessing my mortgage account online, it was indicating I had a "Fixed Rate" of 2.29%
  3. On 10 June 2023, accessing the same account, the account was indicating a Variable Rate of 5.83%.

On say a not uncommon $1,000,000 Sydney mortgage, the DIFFERENCE in interest over one day, amounts to $96.99.

Isn't the bank jumping the gun and starting me on my variable interest rate one (1) day too early? Doesn't "maturity date of 10 June 2023, mean that the 10th should be the LAST full day on the fixed rate? Am I out of order?

I would appreciate the opinion of the community!

Poll Options

  • 6
    The bank is out of order.
  • 64
    I am out of order.
Financial

Comments

  • jjjaar on 11/06/2023 - 21:24
    +1

    Google gave me this website, you may not be with CBA, but check out Scenario 6 in “Non-business day maturity date”

    https://www.commbank.com.au/home-loans/fixed-term-interest-o….

    • GOCAT9 on 11/06/2023 - 21:29
      +1

      Thanks jjjaar. That link clearly shows that the BANK is out of order because the 10th should be the last day of the fixed rate. I will quote that ref to my bank!!

      • Hybroid on 11/06/2023 - 21:32
        +5

        Before you do, read your T&Cs carefully. If they're anything like CBA's… 10th June is a weekend so it's the day before i.e. 9th June.

        https://files.ozbargain.com.au/upload/255280/104294/maturity…

      • jjjaar on 11/06/2023 - 21:35
        +2

        I think you need to re-read the link I sent.

        10th is a non-business day. Therefore it reverts back to the previous business day, that is, the 9th.

        • GOCAT9 on 11/06/2023 - 21:36

          I did, see below, you are right!, thanks

  • GOCAT9 on 11/06/2023 - 21:35
    +1

    Hybroid, thanks for that. According to CBA:

    What is my actual maturity date?
    Your actual maturity date may occur earlier by up to four calendar days than your scheduled maturity date due to our system processing.

    The actual maturity date depends on the day of the month the scheduled maturity date falls on, and if that day is on a business day or a non-business day.

    Note: Interest in Advance periods will mature on the scheduled maturity date, even if it is a non-business day.

    ok, This means I could be stuffed!!

  • tsunamisurfer on 11/06/2023 - 21:39
    +22

    You know you are f&%ked when you have a $1m mortgage @ 5.8% and you sweat over 1 day of interest.

  • GOCAT9 on 11/06/2023 - 21:40

    You are probably right if I did have a $1m mortgage. Thankfully I dont, it was just an example!!

    • ssfps on 12/06/2023 - 00:28
      +3

      There are so many Nelsons on OZB that jump at the chance to rub in some perceived failing, even when you've posted a hypothetical example.
      I'm often interested in the questions people raise about contractual obligations, yet there is usually a chorus of bootlickers who, without the full story, love to side with the corporate entity that has a room of lawyers on staff.

  • Wiadro on 11/06/2023 - 21:47
    +1

    lol seems like youre in for a bad time

    • GOCAT9 on 11/06/2023 - 21:50

      ah, not so much! I will be paying the loan out in full on the next business day (Tuesday)!!

        • GOCAT9 on 11/06/2023 - 22:00
          +3

          This IS Ozbargain, isn't it??

          That's how I got to be able to pay it out in full!!

      • Donaldhump on 12/06/2023 - 07:32

        why? just offset it

        • GOCAT9 on 12/06/2023 - 10:48

          Exactly, I am going to!

          No brainer, right?

  • Eeples on 12/06/2023 - 02:11

    So, that’s roughly an extra $1400/fortnight.

    Astonishing.

  • UnternamenBernhard on 12/06/2023 - 04:38
    -1

    I'd unload the property to be frank. 1 million's probably cheap in Sydney, but I wouldn't spend a million in Australia.

  • Donaldhump on 12/06/2023 - 07:30

    I would say you are right, but banks will shaft you so is it worth your effort complaining beyond one phone call?

    • GOCAT9 on 12/06/2023 - 10:54

      It’s worth it because it is a “sport” for me and I have the luxury of time as a retiree!

      However, I think I will gracefully loose because I suspect, as somebody quoted some T&Cs above that when the maturity date falls on a non-banking day, they terminate it the last working day BEFORE, which appears to what has happened.

  • markathome on 12/06/2023 - 09:03
    +1

    In fairness the poll options will always be biased without a third option, "The whole damn system is out of order".

  • JimmyF on 12/06/2023 - 09:27
    -3

    "a maturity date of 10 June 2023".
    On 10 June 2023, accessing the same account, the account was indicating a Variable Rate of 5.83%.

    "The maturity date refers to the moment in time when the principal of a fixed income instrument must be repaid to an investor."

    So your bank is correct, on the 10th June you had meant ot 'repay' the debt

    https://www.investopedia.com/terms/m/maturitydate.asp#:~:tex….

  • Drakesy on 12/06/2023 - 11:10

    Lol, overleveraged people pooing their pants.

    Darling, that $100 is the least of your worries.

    • GOCAT9 on 12/06/2023 - 11:39

      Drakesy: Help me out here then: I’m struggling to think of any worries I have that are greater!!

      • Drakesy on 12/06/2023 - 12:10

        It'll come to the surface later this year.

      • Ghost47 on 12/06/2023 - 12:52

        Here’s one: your Friday night fish and chips will cost you $80 instead of $40.

  • Typical16-bitEnjoyer on 12/06/2023 - 12:23
    +1

    Excuse me, just wait a sec whilst I grab my comically small violin

  • Ghost47 on 12/06/2023 - 12:51

    On say a not uncommon $1,000,000 Sydney mortgage, the DIFFERENCE in interest over one day, amounts to $96.99.

    shocked Pikachu face

    Shall we start a petition for a HomeKeeper policy where mortgagors get paid taxpayer money to pay their mortgages?

    • brendanm on 12/06/2023 - 13:38

      No need to be upset, you'll own a house one day if you are willing to put in the work.

Login or Join to leave a comment
Login Join