Welcome to MacTalk Australia

the largest Australian community for Apple discussions and topics

» Join the discussions, Register Now!
Results 1 to 18 of 18
  1. #1

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default Off-set mortgages and secrets (CBA)

    Hey folks,

    I learnt a valuable lesson today so I thought that I'd like to share it with my fellow Mactalkers.

    If you have a mortgage with Can't Be Arsed (Or as they prefer to be known, Commonwealth Bank of Australia) and it's one with an Off-Set MISA function then there is a possibility that your bank is making money from you that you perhaps think it shouldn't.

    I've had my mortgage for 9 months now. We signed all the forms to set up our off-set mortgage and when we asked for our account details so we could get our salaries paid into the account we were given a BSB and Account no. So far so good, no?

    Being Scottish I have raised with my partner a few concerns that we seemed to be still getting paid tiny amounts of interest on our account, and correct me if I'm wrong, but we're supposed to forego interest to save it on the loan.

    She phoned them a couple of days ago and the bank were no very helpful... I had to actually go and calm her down because the guy on the phone was so patronising - saying that it's normal for this account to be paid interest.

    I decided that I would call them today. And I'm glad I did. If you set up a MISA account it does not become active until you pay $1000 into it. It will not show up in Netbank, it's like it's not there - because it's not.

    CBA also set up a "Streamline Account" - this is their current account, where you pay your bills from. We've been paying our wages into this all this time and even when I spoke to a branch manager and advised why I was getting a credit card (7 months ago!) he did not once say "but you've not activated your MISA account..."

    If it wasn't for my nasty feeling we'd have never known. It's probably cost us a few hundred dollars in interest, maybe more.

    If you have a loan with the CBA and it's Off-Set - CHECK.

    Some of you, no doubt, and laughing and calling me a newb - I'll agree - this is my first mortgage - it should not have been this sneaky.

    Hopefully this might save someone some money too.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  2. #2

    Default

    same thing with me... I thought the MISA was automatic.. apparently 1k deposit is required.... we got it right middle of the 2nd month

  3. #3

    Join Date
    Apr 2004
    Location
    Perth
    Posts
    3,102

    Default

    You should post this on notgoodenough.org, Lutze.
    .
    Times are bad. Children no longer obey their parents, and everyone is writing a book.

    - Cicero (106BC-43BC)

  4. #4

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    I'll maybe do that - I'm waiting to see what they are going to do about my complaint.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  5. #5

    Join Date
    Sep 2006
    Location
    Perth
    Posts
    1,695

    Default

    Lutze - they have obviously mis/non-informed you somewhere along the way.

    I have a number of accounts with CBA, including a mortgage, MISA, streamline, CC. I was told when I opened the MISA I needed to deposit $100 to start it off. I was also told that I cannot pay any bills from the MISA, hence the streamline account was needed.

    My money gets paid to the streamline, I then transfer as much as I can to MISA and move it back bit by bit on a daily basis to keep the streamline with sufficient credit for day-to-day living.

    Maybe I just got a good employee that explained this all to me. But it certainly sounds like they haven't done the right thing by you. If they want your business, they will come to the party.
    Kushti

  6. #6

    Default

    Quote Originally Posted by Mac Ram View Post
    If they want your business, they will come to the party.
    That's the problem I find with my bank (ANZ) - they already HAVE my business, given that I've taken a mortgage out with them. Exit fees are substantial, so it's really hard to take my business elsewhere - and correct me if I'm wrong, but that's the same with all the major banks.

    So we have no leverage in demanding better service - they have no incentive to look after you once the deal is signed. And that includes interest rates etc - if they don't pass on an interest rate drop, it's more expense in admin/exit fees to shift to a 'cheaper' bank than you'd save on the interest at the new one.

  7. #7

    Join Date
    Sep 2006
    Location
    Perth
    Posts
    1,695

    Default

    Quote Originally Posted by Paul_G View Post
    That's the problem I find with my bank (ANZ) - they already HAVE my business, given that I've taken a mortgage out with them. Exit fees are substantial, so it's really hard to take my business elsewhere - and correct me if I'm wrong, but that's the same with all the major banks.

    So we have no leverage in demanding better service - they have no incentive to look after you once the deal is signed. And that includes interest rates etc - if they don't pass on an interest rate drop, it's more expense in admin/exit fees to shift to a 'cheaper' bank than you'd save on the interest at the new one.
    Agreed, it's never easy and your bargaining position may well be weak.

    But do remember, they make money from your mortgage.
    Kushti

  8. #8

    Join Date
    Apr 2006
    Location
    Melbourne
    Posts
    635

    Default

    If it's some conciliation, the interest you would have paid wouldn't be in the hundreds as you feared as given you would have had under $1000 in there at 6% and assuming $999 in there the most you would pay would be $60 in a year.

    Still I have a MISA and didn't even know about the $1000 initial deposit so they are obviously not making it obvious enough.

  9. #9

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    Quote Originally Posted by Mac Ram View Post
    Lutze - they have obviously mis/non-informed you somewhere along the way.

    I have a number of accounts with CBA, including a mortgage, MISA, streamline, CC. I was told when I opened the MISA I needed to deposit $100 to start it off. I was also told that I cannot pay any bills from the MISA, hence the streamline account was needed.

    My money gets paid to the streamline, I then transfer as much as I can to MISA and move it back bit by bit on a daily basis to keep the streamline with sufficient credit for day-to-day living.

    Maybe I just got a good employee that explained this all to me. But it certainly sounds like they haven't done the right thing by you. If they want your business, they will come to the party.
    I pretty much got the run down on this from them yesterday. I was astounded that the level of care we've put into our banking has been wasted. We have micro managed our streamline account in a bid to save money and it's all been for nothing. We've built up a fairly reasonable redraw on the mortgage because we have over paid significantly.

    I think our Aussie broker is probably the first point of blame, but the bank have had 3 or 4 clear chances to slap us and say "hey, you are missing the point".

    They asked how they can rectify this and I said that I want to know how much this has cost me, and while I don't expect to get that back it would be nice, I also said that the MISA account should show up even if it's not active by default.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  10. #10

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    Quote Originally Posted by drzeus View Post
    If it's some conciliation, the interest you would have paid wouldn't be in the hundreds as you feared as given you would have had under $1000 in there at 6% and assuming $999 in there the most you would pay would be $60 in a year.

    Still I have a MISA and didn't even know about the $1000 initial deposit so they are obviously not making it obvious enough.
    The problem is that we would have paid our wages into this and drawn money to the streamline account when we needed it. Every day you have $$ in the misa you save $$ in mortgage interest. We're talking in order of ~$9000 per month in income. We use a credit card for all shopping that gets paid off when money is required - so far in 7 months we've paid no interest on the card and it's been carefully looked after.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  11. #11

    Join Date
    Apr 2008
    Location
    Brisbane, Queensland, Australia, Australia
    Posts
    3,781

    Default

    Quote Originally Posted by Paul_G View Post
    That's the problem I find with my bank (ANZ) - they already HAVE my business, given that I've taken a mortgage out with them. Exit fees are substantial, so it's really hard to take my business elsewhere - and correct me if I'm wrong, but that's the same with all the major banks.

    So we have no leverage in demanding better service - they have no incentive to look after you once the deal is signed. And that includes interest rates etc - if they don't pass on an interest rate drop, it's more expense in admin/exit fees to shift to a 'cheaper' bank than you'd save on the interest at the new one.
    No. No. No. Wayne and Kevin fixed that. Don't you remember!?!?!
    2013 MacBook Air, MacBook Pro 15" 2.4/500GB, 2x 27" iMacs, iPhone 5 Black, several iPads.

  12. #12

    Join Date
    Apr 2008
    Location
    Brisbane, Queensland, Australia, Australia
    Posts
    3,781

    Default

    Quote Originally Posted by Lutze View Post
    We've built up a fairly reasonable redraw on the mortgage because we have over paid significantly.
    Personally, Lutze, I think what you've done here could actually be better anyway. What's the interest rate on the MISA account? Excess funds in the home loan could work out better.

    But, I'd still go for the full whack in compensation.... because you weren't told.
    2013 MacBook Air, MacBook Pro 15" 2.4/500GB, 2x 27" iMacs, iPhone 5 Black, several iPads.

  13. #13

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    Quote Originally Posted by kevinnugent View Post
    Personally, Lutze, I think what you've done here could actually be better anyway. What's the interest rate on the MISA account? Excess funds in the home loan could work out better.
    As far as I know the redraw does not get interest, and neither does the misa. How to win with this is to have your entire income in the misa as much as possible to remove that amounts level of interest from the loan. We have overpaid the repayments and that's created the redraw. But the interest we have paid for 9 months that we could have saved is probably 5% less an average over the month balance of $2000. Multiply 9 times and it all adds up. As it stands we will have our 30 year loan paid off in, at the rate we were going 18 years - with a shift we have planned to increase payment frequency and value in two months will be 10 years.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  14. #14

    Join Date
    Mar 2008
    Location
    Newcastle
    Posts
    499

    Default

    When i worked for CBA i dealt with this problem alot with Netbank customers. The first person you called up would have seen a 'stop' on the account, had he of looked into it there would have been information telling him that the required $1000 for activation had not yet passed through the account. This was obviously a home loans issue to tell the customers but some of them just didn't care!

    CBA is fairly good, especially these days when it comes to refunding lost interest for customers so you shouldn't have any problems getting it back. IF you do then once you have exhausted the banks complaint department all you need to do is make a call to the ombudsmen and CBA will cower down and pay up within an hour. Every case that goes to the ombudsmen apparently costs the bank $10,000.00 upfront regardless of the out come, so they will of course pay you a couple of hundred if need be instead of the $10k.

    And there is no way they are going to allow the MISA to show up on netbank before it has been correctly activated. You can make a song and dance about it until the cows come home BUT its not as simple as clicking on the little box that says 'make visible immediately'.

    Good luck though.

  15. #15

    Join Date
    May 2005
    Location
    Sydney
    Posts
    326

    Default

    But it's not just the area of mortgages etc. that banks struggle with. I find that the banks have so many different accounts and features with their accounts that you have to hope the staff member you speak to on the day gives you the right advice.

    So one bank employee who didn't listen to their trainer gives me bad advice which I believe and act on. Later I find another bank employee telling me that I've been doing the wrong thing — and "no-one in this branch would have told you to do that…" and "No we can't reimburse you any excess fees you think we've charged you…"

    Very frustrating St George!

  16. #16

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    Quote Originally Posted by iPath View Post
    When i worked for CBA i dealt with this problem alot with Netbank customers. The first person you called up would have seen a 'stop' on the account, had he of looked into it there would have been information telling him that the required $1000 for activation had not yet passed through the account. This was obviously a home loans issue to tell the customers but some of them just didn't care!

    CBA is fairly good, especially these days when it comes to refunding lost interest for customers so you shouldn't have any problems getting it back. IF you do then once you have exhausted the banks complaint department all you need to do is make a call to the ombudsmen and CBA will cower down and pay up within an hour. Every case that goes to the ombudsmen apparently costs the bank $10,000.00 upfront regardless of the out come, so they will of course pay you a couple of hundred if need be instead of the $10k.

    And there is no way they are going to allow the MISA to show up on netbank before it has been correctly activated. You can make a song and dance about it until the cows come home BUT its not as simple as clicking on the little box that says 'make visible immediately'.

    Good luck though.
    Thanks for this info!

    I don't *think* I'm stupid - but to have missed something like this would have been terrible, if it's happened to other people then it's likely because the information is hitting a wall somewhere.

    We know the initial breakdown happens between our broker and the bank. We asked for the account details and the broker was told our streamline account details and he passed them on to us. If we'd been given the MISA account details we'd have been sorted right from the start as we'd have hit a wall trying to get money out after our first wages hit the system. But of course it would have activated MISA and we'd have been able to move stuff around.

    Folks don't set up a MISA and not use it on purpose. That much I'm sure of.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

  17. #17

    Join Date
    Mar 2004
    Location
    Canberra
    Posts
    2,082

    Default

    Quote Originally Posted by drzeus View Post
    If it's some conciliation…
    consolation

  18. #18

    Join Date
    Mar 2007
    Location
    Ellenbrook, WA
    Posts
    6,102

    Default

    $95.13c

    They've credited the money back to us. So I'm done and dusted.

    No admission of guilt or lack of highlighting the issue to other users though, of course. I'm still tempted to go to one of those stupid tv shows and see if they will publicly push them to do something about this.
     iPhone & iPhone 3GS, Macbook Pro 17" C2D 2.8ghz. iMac alu. 20" C2D 2ghz. iMac 20" CD 2ghz & Cube 450mhz. Website

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •