Have you ever checked a shopping docket to find that an item was charged twice or that you were overcharged for something?
Chances are that you have experienced at least one mistake on one of your dockets in your lifetime.
My question to you now is this:
“If your favorite retail stores or super markets sometimes make mistakes then what makes you think you bank never makes a mistake?”
As an investor wouldn’t you check the rent coming into your bank account, and if there was a mistake you would follow it up and make sure you got the money owed to you? Yet almost all investors simply believe that their banks don’t ever make mistakes, and they never check up on their banks to see whether a mistake has been made or not.
Today Tonight has discovered that bank errors are a common occurrence and that they can add up to over 100 million dollars per year! Yikes! This is clearly a real problems and something you should be checking.
Why Should I Bother Checking Up On My Bank?
Banks/lenders are run by people and programs and, as always, neither people nor programs are perfect. Mistakes are often made by people and programs and just because your bank/lender deals with large sums of money (like your home loan) you shouldn’t assume that it would never happen to you.
It is important to check for mistakes on your home loan because a small mistake on your home loan, stretched out over a long period of time can become a big mistake. A simple mistake in the first year of your loan could cost you over six and a half times the initial amount when you stretch it out over a 25 year loan (assuming 8% p.a. interest)
What if your lender accidentally charged you just 0.25% more in interest than you are meant to be paying? A mistake that could be easily made, that is an extra $750/year if you have a $300,000 mortgage or $1,500/year if you have a $600,000 mortgage. Over the life of your loan this simple mistake could cost you tens of thousands of dollars…AND IT DOES HAPPEN!
So How Do You Check Up On Your Bank?
It is a little harder to check up on your bank than it would be to check up on the rents coming in. That is because your mortgage is complicated. Fees, variable interest rates and offset accounts makes it even more difficult to find out if you are being overcharged.
You Could Check It By Yourself
You could go to the bank and talk to them yourself. If there is an obvious mistake they will likely be able to fix it for you and many changes in your costs can be explained to you. You may have a monthly account keeping fee you didn’t account for, or the banks may have raised interest rates higher than the reserve bank.
You could also try to calculate all the expenses you should have paid yourself, but even if you discover a mistake your bank may not accept your findings as fact and may not pay you the refund that you are owed.
You Can Pay An Accountant To Check It For You
You can pay an accountant who specialized in statement checking to check whether the bank has made any mistakes on your mortgage. You can get them to check your mortgage and your statements and see if there have been any errors in calculation.
Accountants don’t come cheap though, so if you are uncertain of mistakes you could be wasting your time and money. Accountants may prove useful, however, if you find mistakes on your loan using your own calculations or a software program, but the banks won’t take it as evidence. You can then confirm the mistake by using an accountant and hopefully have an accurate claim so you can obtain your refund.
You Can Get Free or Affordable Software To Check Mistakes For You
This is the easiest and most affordable way to check for mistakes on your mortgage. Software programs calculate the interest and fees you should have been paying over the term of your loan so you can compare them with the amounts on your statements.
You need to make sure that you are choosing a program that is reputable to ensure that your lender will accept the results generated by the program. If the lender doesn’t accept the results then you won’t get your refund.
Check up on your chosen software and look for real life testimonials where people actually got paid by their lenders for the mistakes the software found. Mortgage Watchdog, a software program designed for this very purpose, has many real life testimonials of people who have received thousands of dollars back after using their program.
Read Below To Find Out How You Can Check For Mistakes Absolutely Free!
I hesitate to recommend any software program that may cost you money but that will fail to achieve results. I don’t want my readers (that’s you) wasting money on a program if you don’t need to. That money could be better spent to reinvest in more property or pay down your mortgage quicker.
That’s why I was excited to hear that Mortgage Watchdog have released a free version of their software. You can use this software with no monetary commitment and you can check your mortgage for mistakes that may allow you to get a cash refund. If mistakes are found then you will need to purchase the software so you can use it to obtain your refund, and if they fail to find anything then you don’t have to pay a dime. This software has been featured on Today Tonight (see the video on the page linked to below.)
To trial the free version of this software (obligation free) then simply go to the Mortgage Watchdog Risk Free Trial Page.
Mortgage Watchdog have had over 24,000 customers find problems in their home loans, and less than 500 who have found their home loans to be free of mistakes.
As a serious investor, I think, you owe it to yourself to at least check up on your lenders to make sure that you are paying the correct amount. If you are paying more than you need to then it will slow down your investing and put a strain on your cash flow. Either talk to your banks, speak to an accountant or punch you numbers into a trusted software program.
I hope that none of your lenders have made mistakes. But I hope even more that you will all have the intelligence to check up on your lenders to ensure that they haven’t made any mistakes.