Report: Research

Research the home mortgage industry in Australia and obtain the latest data (lending rate and fees) from the financial institutions website. Compare three products from different financial institutions (such as basic home loan, one with offset account, variable and/or fixed lending rate) and choose the best one for this assignment. Explain why chose that financial institution and its product (in terms of interest and fees). Please attach a copy or provide the link(s) of the relevant information you found on the website.

Report: Calculations

Using the PVA and EAR formula to calculate the principal amount of $995433: a. i. Initial fortnightly payment of a 20-year mortgage. ii. Fortnightly payment in Year 5 8 if the interest rate is increased by 2.5% after 4 years. iii. Fortnightly payment from Year 9 onwards if the interest rate is further increased by 2% after 8 years. iv. Effective annual interest rate for Year 1-4, Year 5-8, and Year 9 onwards. v. Average effective annual interest rate of this mortgage. b.Explain how the extra fortnightly repayment affects the terms of the mortgage.

Excel: Mortgage term and Mortgage summary

Fill in the Mortgage term and Mortgage summary using the excel functions (where appropriate) in the spreadsheet.