Forum Replies Created
- number 8 wrote:STG have the old system that does not calculate your interest daily, rather it is a static figure that is calculated at the beginning of the year. This is not good if you have a large amount of money in an offset account.
So if this is correct they will only recalculate the figure at the start of a new year?
this is not ideal as I have almost a 1:1 ratio with my offset.
Terryw wrote:if the amount in the offset exceeds the loan you will not, usually, be getting paid interest, so it would be better to put the excess funds somewhere else to get a return on themJust as I thought, Thank you Terryw
Terryw wrote:One exception is st g which, in one of their accounts, takes the savings off the principle.I believe this is the offset account I have.
Out of interest (no pun intended) which obtains the better benefit, reducing the principle, or reducing the interest (hence IO payments will be lower so less money locked away)obviously reducing the principle is best.
Apart from the obvious (being idle money) is there an issue if your offset exceeds your loan? Or does a bank not allow you to deposit anything greater then the loan balance.
Thanks again.
Wow thanks for all the responses, I believe benno79 summed it up correctly in the following,
benno79 wrote:The repayments are calculated on the 'original loan balance', for the life of the IO loan (usually 5 years or so).So in essence any “extra” repayments are reducing the outstanding balance of the mortgage and are locked up so to speak.
Whilst this is my ultimate goal I was trying to see if I could reduce the amount I had to pay to the bank and keep hammering the extra into the offset so the funds would not be locked up.Once the interest only period has passed, I’ll again put it back on IO and assume this will reduce the repayments as the loan balance at that time will be significantly lower.
I appreciate your assistance and responses, A great forum for information.
Thank you.
Banker wrote:If your loan is paid by direct debit; ring the bank and tell them you will make payments manually.Thanks for the response and idea, I wish the bank would let me do this and pay via CC to earn FF points.
benno79 wrote:Dan,
I found myself in a very similar situation recently – I am also with St George.
I asked my broker to explain and they told me this:
"I/O payments are always based on the loan balance, regardless of the offset balance.
Thanks for the response, however every month my loan balance is reducing due to the cash in my offset, yet the payment is static.Thanks for the responses,
The bank the loan is with is St George Bank.
Here is some more information to help clarify my question. The loan was originally a P&I loan for 30 years, however after 1 year I converted it to interest only with a 100% offset account. I pay the interest amount monthly and bank any extra into the offset account.
So whilst my interest only payments are high, my interest charged amount is a lot less due to the offset and the balance reduces my mortgage.
The result is that every month in my mortgage balance is being reduced (even though I make interest only payments)
What I fail to understand is that even though my balance is reduced each month, and the amount of interest each month should be different due to the number of days in the month, my interest payments remain static (unless rates change) why is this?
Secondly any money that is ahead of the projected term of the loan can not be withdrawn, nor can the repayments be recalculated to lower my monthly commitment.I’ve tried talking to the bank about this but loose them because I have not made any “additional payments” and the surplus in my mortgage is locked away.
By writing this post I may have found the answer, is the bank calculating the interest on my loan based on a 30 year repayment term, where ( for example a portfolio loan) is calculated as possibly never being paid out?
*on a side note I have a portfolio loan with them which works exactly as it should (to my understanding) in that each month the interest payable varies with the days per month, and hence my payment varies, yet the above loan is interest only and does not do this.
Thanks for your response Richard,
Qlds007 wrote:In shortThe loan is an interest only loan and therefore the loan repayments will vary depending on the number of days in the month
My loan is this yet the repayments remain static, regardless of days in the month and it even ignores the fact the the balance is lower month to month. This is what I don't understand.
Originally posted by The Mortgage Adviser:
[do you know if it is possible to hook up with the existing competition organisers?I’m sure it would be easy to hook you up. Maybe enquire about some LAN’S and who organises them.
Also if people are going to hiring out the place for LAN’s and the such, a tip might be for a slight reduction in cost they can supply their own keyboard/mouse. Most serious gamers will have a particular combo they like to work with and if they loose they are less likely to bash the keyboard in frustration.
I’m sure all those broken keyboards add up.
Also regarding the website hosting side I don’t know $ wise but even hiring out dedicated servers for people to host their own LAN on from remote locations? could be a unique way of generating more income using minimal space.
I’ll think of some more ideas….when do I get my membership card? [biggrin]
Originally posted by wayneL:Geez what a treasure trove of ideas this place is!
I know where I’m coming if I ever want to start a new business…..hmmmm come to think of it, I AM. Will be back when the idea is better formed.
wayneL,
Please when your ready post your business idea, As a reader of your posts here (and mostly aussiestock) I would happily put forward any ideas they may be of either assistance, usefulness or a waste of space.
Keep up the informative posting
Rob,
Just a few more idea’s in regards to generating business after hours in the LAN environment. Why not host competitions to find the best of the best and the best teams to challenge some other interstate / international teams. Could make a great HQ for some international LAN Party’s
Also as a bit of a gamer myself I know there are two camps in this area PC based gamers and console based gamers. Why not look into the feasibility of hooking up some x-box’s or PS2s to your monitors and hosting your own multiplayer tournaments? By rotating different systems (if feasible) could open up a greater customer base.
If I think of a WOW factor (your original question) I’ll let you know
Rob,
In regards to product launches don’t limit yourself to just software. I don’t know about Sydney but in Melbourne at swap meets and such graphic’s card manufactures have pretty decent displays, Why not launch a card and have a demonstration on your premises?
As for the LAN party, yes I meant what you described about group bookings.
I have some more ideas on the tutorial side of things so when you looking at that let me know.
Keep in touch, next time I’m in Sydney I’ll drop by and have a look.
I wish you the best of luck with it.
Hi Rob,
It’s about time I made a post in this forum. I have been a long time reader of this site and have appreciated the information I have gained from your posts. Anyhow some ideas you may want to consider for your venture (some already suggested).
• Tuition / courses during quiet times for corporate clients / Seniors / Computer illiterate people. It’s amazing how many people use only the basic functions of their pc simply because they haven’t been taught correctly.
• After hours hire for self hosted LAN party’s
• Rental for product launches & hand’s on demonstrations
• Digital Photo Printing service (reasonable rates)
• Set up a few pc’s with Skype for cheap international calls
• Maybe some website hosting service onsite (put a few servers out back)Good luck with the venture. Keep us informed of how it goes.
