Browse Forums Home Finance 1 Apr 10, 2011 3:20 am I have just bought my first home, and as i had a large deposit, i only had to borrow $169,000. I decided to go with the "ANZ simplicity Plus" home loan as the rate was so competitive. From what i understood from my mortgage broker, its a "non reducible interest" loan? (not sure if this terminology is correct or is it is true about the loan) Anyhow, he told me that i would be able to pay my loan off faster (i plan on working hard and paying it off in like 8 yrs hopefully) if a made extra repayments. At the time, i thought this was great and i didnt really worry about the "non reducuble interest" part so i went ahead with the loan. After a while, i got to thinking how after a few years of me paying off my loan.. say i have my principle down to $90,000 - im paying soo much interest every year because it will be 7.XX% of $169,000 instead of 7.XX% of $90,000 like i would with another loan (am i right?) Paying all that interest every year sure would make it hard to get the principle down. It makes me wonder why anybody would get a non reducible interest loan in the first place? or is it really not as bad as i think it is? So anyway, i can see the ramafications of my decision to get this type of loan wont start to affect me much until after a few years, so would anybody suggest i refinance within the period of say.. 2 years? Thanks in advance. Re: Did i make the right decision? 2Apr 10, 2011 7:03 am Hi, I have had a quick look at the ANZ web site and nothing I can see says that it is a non-reducible loan. If it was then the comparison rate would be much higher than the 7.15% quoted. The main difference I can see between this loan and other ANZ loans is no mortgage offset facility is available and you don't get discounted/free transaction accounts. Maybe the broker was referring to the inability to use mortgage offset to reduce your interest? A quick call to the ANZ should be able to get you a definitive answer, but it looks OK to me. Paul Re: Did i make the right decision? 3Apr 10, 2011 10:42 am I think you're right, i just must have misunderstood. Thanks for that Not sure who you're building with, but I moved in recently to a 11month scheduled, 8 month actual build on the South coast/Illawarra NSW 3 5919 I posted the floorplan on Houzz.com forum and got some really good ideas and advice from people there. Then we reached out to a couple of renovation companies and one… 5 10106 at most it will have a short lintel which could be moved up just below the ceiling or even above. Above means you need to patch the cornice and might need to deal with… 2 61392 |