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Do banks make mistakes on mortgage rates?

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  • Do banks make mistakes on mortgage rates?

    I am slightly concerned whether the mortgagee rates have been all calculated correctly after having experienced with our bank manager making mistakes, e.g. wrong rates, wrong interest payment terms, wrong deduction accounts etc.. No apologies offered.

    Has your bank made a mistake on mortgage rates?
    Do you check it sometimes? How easy or difficult is it?
    How do you find a good bank manager who can work with you for long term?
    or is it not important to have a good relationship with bank manager?

    We have not been happy with the manager, but still deal with her.

  • #2
    yes they can make mistakes

    but you need to be on very firm ground before you accuse them of that

    basically ask all your questions when you take out the loan, or renew it

    write down what you are told

    keep it and check it against what happens

    ie if they offer you a discount on advertised rates, write it down and check you get it when they send the paperwork through

    other stuff can get very complicated and they don't want to re-explain it after the loan has been issued

    read the fine print!
    have you defeated them?
    your demons


    • #3
      You can download amortization tables in Excel and other products. If you plug in the current details it will tell you repayments, remaining term etc. Might not be exactly the same as the bank calcs but would be a starting point for a conversation if much different.


      • #4
        They definitely make mistakes, not sure on repayment calcs, but recently when drawing down on the bank loan, they gave us an extra $20k randomly. We made them take it back but some would say it that would have been a good thing...


        • #5
          I can see how Eri's advice is important. For the renewal, there was no written contract. I found the problem from their website that displayed our mortgagees.
          Thanks Artemis, I will look into using amortisation tables.


          • #6
            Deal in emails. you always have them then to refer to.


            • #7
              Yes Kiwibank made mortgage interest calculation mistakes on mine because they had forgotten to apply a 0.65% discount over and above their standard published rates that had been agreed to with their lending agent. It happened again when the mortgage interest rates came up for review after a 3 year time span.
              They refunded me the miscalculated interest.


              • #8
                It's not unknown for banks to make mistakes on the loan documents, probably happens on a transaction I'm involved in once a year or so, usually by getting the discount margin wrong. Sometimes it's on purpose....they've reviewed, and deliberately decided to issue instructions with a different margin, while not telling the customer (which I presume is an oversight) and leaving it for them and their lawyer to notice. Sometimes it's an error.