I just did an online calculation, it surprised me, but I may be wrong.
we have a loan of $290,000 with $150,000 offset, the interest rate is 4.75%, the online calculator says the fortnight payment should be around $350, but we paid $750, I know the online calculator is not very accurate, but the difference is too much. Can anyone explain to me?
The loan is most likely principle and interest (especially as you have said its a fortnightly repayment, interest only is generally monthly ONLY), so even though you are being charged less interest, the minimum repayment figure is still being debited. This just results in the principle decreasing at an accelerated rate as there is a lower than expected interest charge.
This reply was modified 9 years, 3 months ago by Corey Batt.