miwahni (miwahni) wrote,

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Tales from the Dragon

It's been an interesting week. The capper was a guy who came to see me yesterday, to ask about the break costs on his fixed rate loan and find out if it was worth his while switching to a variable rate. He also tried to tell me that he wasn't given a choice of loans when he applied, and that his "financial advisor" couldn't understand why he had such a high interest rate.

Me: "your loan has a higher interest rate to reflect risk; you borrowed 100% of the purchase price and didn't pay mortgage insurance"
Him: "but I wasn't given any other option..."
Me: "...and did you have the $13000 that mortgage insurance would have cost you?"
Him: "no, I didn't have any savings".
Me: "in which case, you didn't have any option but the quick-start loan... the lender wouldn't have wasted time explaining loans you weren't eligible for."

He went on to whinge that banks are all unconscionable, and we should have dropped our rates when the Reserve Bank put their rates down. *sigh*. As I explained to him, we did exactly that - on our variable rate loans. If he'd wanted his rate to fluctuate he shouldn't have chosen a fixed rate.

After he left I went into the loan diary to add notes about our discussion, and discovered that he's made three other branch visits in the last month, to three other branches, to discuss exactly the same thing. Seems as though he's branch-hopping until he finds someone who will tell him what he wants. The lender who wrote the loan was on his visiting list, and she just happens to be a very good friend so I rang her last night, just to suss her out on the conversation she had with him. She confirmed that he seemed to be trying to accuse the bank of taking advantage of him.

What really blew me away, though, was his stated declaration that he intended to apply for a personal loan to pay the break costs, so that he could switch to a variable rate loan. Okay, so the repayments on $28000 over 5 years at personal lending rates are $658.92pm, and he'd be saving around $800 a month on the home loan, so the maths is about right. BUT - and it's a BIG but - rates are at their historically lowest point for over 10 years. They may well drop further, but I'd bet my dear old granny that before five years is up, those rates will be higher than they are now, thereby reducing his saving per month. And he'll be the first one in the door to have a whinge when that happens.

So what else has happened? Bought a shirt in Rockmans yesterday, just so I could use up a $10 voucher I had - only to realise, as I went to pay, that the voucher was for Katies. Aargh! Talk about feeling like an idiot when it was pointed out to me. Sales lady had already rung up the sale, and I like the shirt, so I went ahead with the purchase anyway.

New side gates are up, too. They were fitted last Friday (only SIX MONTHS after I gave the okay! Message never made it back to the office, it seems) but he had to come back on Monday and secure the downpipes for the carport, which he had moved during the gate installation. All fixed now, and paid for (along with the back fence, finally). I'm really pleased with them.
Tags: life the universe & everything, work

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