The Interest Savers

SAMPLE STATEMENT 1 HOME LOAN CHECKER
INTEREST CHARGED ON 18TH MARCH 1999 CORRECT

Notes:
1. The start date is the date of the previous ‘interest debit’ shown on the statement
( 18th February 1999).

2. The end date of 17th March 1999 is the date prior to the ‘interest debit’ being checked
( 18th March 1999).

3. The opening balance is the last balance shown at the end of the start date ( $78,946.19 ).

4. The interest rate is the interest rate shown on the statement. The interest rate should be shown on your statement. If it is not shown, the lender must provide the interest rates.

5. The number of days box is automatically set at 365 days which is used in the lenders formula.
You may change this to 366 days for leap years as the lender should use 366 in their formula for leap years. Most lenders do not use 366 days for leap years and this results in higher interest charges for the borrower. The borrower then pays additional interest on that overcharge for the life of the loan.

6. The balances shown on the left hand side of the screen under Daily Balance Entries have been inserted by clicking the ‘ADD’ box. When the balance changes the new at the end of the day is inserted. Lenders calculate interest each day on the balance at the end of the day.

7. The Revised Interest Rate box at the top right side of the screen allows for interest rate changes.

8. The Interest Debit amount at the bottom of the screen shows the interest that should be on the statement ( $395.06 - the statement shows $395.06 which is correct).
This is obtained by clicking the Compute Interest box.

9. All other interest charges shown on this statement are correct.

SAMPLE STATEMENT No. 1

MAJOR INTERNATIONAL BANK Page 2 of 3

[1] Name of lender.

[2] Address of lender.

[3] Name(s) and address of the borrower(s)

[4] Type of loan and account number.

[5] Statement number 4 shows that this is the 4^th statement issued since the loan was commenced.

This is page 2 of 3 pages issued for this statement.

[6] This statement begins on the 1^st January, 1999 and will show all transactions since that date.

[7] This statement ends on the 30^th June, 1999 and will show all transactions from the start date of this statement until this end date.

The statement Beginning and Ending dates show you the period that the statements covers. In this case it is a six-months period. It should show all transactions that have occurred during that period. E.g. It will show :

· the opening balance [ i.e. the balance owing at the start of the period ]

· the closing balance [ i.e. the balance owing at the end of the period ]

· all credits [ i.e. all repayments and any other payments and or reversals

made to the account to reduce the balance owing ]

· all debits [ i.e. all interest charges (usually monthly)

all bank fees and charges (usually monthly)

all government fees and charges (usually monthly)

any reversals that will increase the balance owing.

[8] Date Column: The dates on which each transaction occurs are shown in this column.

There may be more than one transaction on any date.

Debit transactions (Interest Charged, Bank Fees and Charges, Withdrawals, Government Charges etc.) will increase the balance owing

Credit transactions (Repayments made by the borrower) will reduce the balance owing.

[9] Transaction Description: This column shows a description of the transaction.

i.e. Repayment (reduces the balance owing)

or Interest Charged (increases the balance owing)

[10] Debits Column: This column shows the dollar amount of each transaction that increases the balance owing.

E.g. Interest Charged

[11] Credits Column: This column shows the dollar amount of each transaction that decreases the balance owing.

E.g. Repayments

[12] Balance Column: This column shows the balance owing after each transaction and/or at the end of each day

when a transaction has occurred.

There may be up to 30 days between transactions and therefore between a change in the balance

owing. This means that the balance owing has remained the same for each of the days

since the previous balance change.

[13] Interest Rate: The interest rate is shown as a % being used to calculate interest on the outstanding

balance owing. Interest is usually calculated at the end of each day on the balance owing at the

end of the day. All of the daily interest amounts are normally totalled at the end of the month

( or on the same date of each month ) and charged ( debited ) to the account to increase the

balance owing.

4-A SAMPLE STATEMENT No. 1

MAJOR INTERNATIONAL BANK Page 2 of 3

TRANSACTIONS

01 Jan opening balance: shows an amount of $78,846.32 owing to the lender.

* interest is calculated each day on this balance until the balance changes.

It is then calculated on the new balance.

11 Jan Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty: is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (including the 11^th) on the new

balance of $78,581.47.

18 Jan Interest Charged: this amount of $440.39 is the total of interest calculated each day from

(and including) the 18^th December 1998 to 17^th January (inclusive) on the balance owing at the end of each day.

18 Jan Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

* Interest is now calculated each day from (and including the 18^th) on the new

balance of $79,029.86.

25 Jan Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (including the 25^th) on the new

balance of $78,765.01.

08 Feb Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 8^th) on the new

balance of $78,500.16.

18 Feb Interest Charged: this amount of $438.03 is the total of interest calculated each day from

(and including) the 18^th January 1999 to 17^th February (inclusive) on the balance owing at the end of each day.

18 Feb Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

* Interest is now calculated each day from (including the 18^th) on the new

balance of $78,946.19.

4-A SAMPLE STATEMENT No. 1

MAJOR INTERNATIONAL BANK Page 2 of 3

22 Feb Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (including the 22nd) on the new

balance of $78,681.34.

08 Mar Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 8^th) on the new

balance of $78,416.49.

18 Mar Interest Charged: this amount of $395.06 is the total of interest calculated each day from

(and including) the 18^th February 1999 to 17^th March (inclusive) on the balance owing at the end of each day.

18 Mar Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

* Interest is now calculated each day from (and including the 18^th) on the new

balance of $78,819.55.

22 Mar Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (including the 22nd) on the new

balance of $78,554.70.

05 Apr Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 5^th) on the new

balance of $78,289.85.

18 Apr Interest Charged: this amount of $436.57 is the total of interest calculated each day from

(and including) the 18^th March 1999 to 17^th April (inclusive) on the balance owing at the end of each day.

4-A SAMPLE STATEMENT No. 1

MAJOR INTERNATIONAL BANK Page 2 of 3

18 Apr Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

* Interest is now calculated each day from (including the 18^th) on the new

balance of $78,734.42.

19 Apr Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (including the 19th) on the new

balance of $78,469.57.

03 May Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 5^th) on the new

balance of $78,289.85.

Balance carried forward to next page $78,204.72 Dr

The amount of $78,204.72 owing to the bank has been transferred to the next page of the statement.

Page 3 of 3

Balance carried forward from previous page 78,204.72 Dr

The amount of $78,204.72 owing to the bank has been transferred from the previous page of the statement.

17 May Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 17^th) on the new

balance of $77,939.87.

18 May Interest Charged: this amount of $421.73 is the total of interest calculated each day from

(and including) the 18^th April 1999 to 17^th May (inclusive) on the balance owing at the end of each day.

18 May Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

* Interest is now calculated each day from (including the 18^th) on the new

balance of $78,369.60.

4-A SAMPLE STATEMENT No. 1

MAJOR INTERNATIONAL BANK Page 3 of 3

31 May Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 31st) on the

new balance of $78,104.75.

14 Jun Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 14^th) on the new

balance of $77,839.90.

18 Jun Interest Charged: this amount of $434.93 is the total of interest calculated each day from

(and including) the 18^th May 1999 to 17^th Jun (inclusive) on the balance owing at the end of each day.

18 Jun Fee for Servicing your loan: this is a monthly bank fee of $8.00 that increases the balance owing.

28 Jun Repayment/Payment: shows a repayment of $265.00.

Financial Institutions Duty : is a Govt. Fee of 0.15 cents.

These two transactions have reduced the balance owing by $264.85.

i.e. Repayment of $265.00 reduced the balance by $265.00.

Financial Institutions Duty increased the balance owing by 0.15 cents.

* Interest is now calculated each day from (and including the 28^th) on the new

balance of $78,017.98

30 Jun Closing balance This is the amount owing by the borrower at the end of the day on

30^th June, 1999.

4-A SAMPLE STATEMENT No. 1

For the period: 01 Jan 2000 to 31 Jan 2000 [7]

Date [8] Description [9] Rate [10] No of Days [11] Debit [12] Credit [13] Balance [14]