Things just keep going from bad to worse - this time it's finance. The contracts for the loan arrived yesterday, and I got a bit of a shock when I read the details.
The first obvious one is the rate rise - which is somewhat expected, but not quite. You see, we were making a final decision between NAB and HomeSide around the time the rates last went up - NAB hiked theirs by 0.10%, from memory. At the time HomeSide was 6.54%.
So I was aware of that, and the broker and I discussed that.
But then when I received the documents today, the second thing that I noticed was the interest rate - 6.79%. Somewhere between then and now, they've hiked their interest rate by 0.25% - it's now higher than NAB, though their comparison rate is lower.
That's not a big concern - what annoys me though is that the broker made no effort to mention this whatsoever while we were still in this process.
So that was the second thing I noticed. What was the first?
We never agreed on an interest-only period for the loan, but that's what the documents I've received say. It means five years of interest only payments, and then 25 years of principle and interest payments.
Now, when you do the math that's not so bad - with a 100% offset account I can just elect to put aside some principle as well and leave it in the account so it doesn't accrue interest.
But it's the mere fact we never spoke about the loan being structured that way and just going and applying for it in that format.
This isn't really a blocker, but how is all this stuff happening without actually disclosing it?!