Subsonic said..
My bank recently decided to drop my home loan repayments down to the minimum repayment level, with no prompting whatsoever from me.
apparently its to help me out in these tough (Covid) times. Problem is I'm not doing it tough, never told them i was. Left the repayment level up so it'd get paid off quicker.
Am i missing something? Im wondering if theres something in it for them...
Anyone else had this happen?
Yes your missing something, or more to the point your bank is missing something called interest, in the form of $$$$.
The quicker you pay your loan out the less interest you will pay the bank as you say.
Many people have redraw ability on their loan, banks encourage people to use this option, therefor increasing the time frame / interest you pay the bank.
So it's a win win for the banks.
If no one owed the banks money there would be no banks.
