ANZ Money Saver vs Simplicity Plus + Offset accounts!

I'm currently paying off an "ANZ Money Saver" investment loan and am now looking to purchase a property to live in (for under $200,000 preferably) over the next 6 months. I have about $35,000 saved up in a few savings accounts which I realise would be MUCH better utilised if they were sitting in an offset account. My loan however doesn't have the offset feature but I recently got offered the chance to switch to one of ANZ's newer loans (Simplicity Plus) which has a lower interest rate and no monthly fee (like my current loan). It also allows me to withdraw any excess money I put into it (at a $25 fee). So I was thinking, should I switch to the Simplicity Plus loan and put all my extra funds into the loan...and then withdraw it all a few months down the track when I need it for the new loan? Another option that was mentioned was that I could transfer to a Standard Variable ANZ loan where the interest would be higher...but the offset account would be available. So I'm just wondering which of the following options would save me the most $:

1. Don't change anything and stay with the Money Saver Loan
2. Convert to Simplicity Plus, add all my savings into the loan, then withdraw it when needed for the new loan
3. Convert to the Standard Variable rate (which is higher) but allows for the offset account
4. Any other options?
 
Hi Platypus

Talk to your broker about the Breakfree Package

The Money Saver loan has been discontinued but the Simplicity is also a basic loan and does not have an offset facility

If you take on the Breakfree you may consider switching the loan to a Standard Variable loan and converting your current ANZ Access Account to an ANZ One Account, which can be linked to the Standard Variable loan and has 100% Off-set facility

The Breakfree Package has tiered discounting, so for more than $150,000 you will have a 0.50% discount, and for more than $250,000 a 0.70% discount.

ANZ aggregate all borrowings, so it is the total of your borrowings which will earn the discount, but Simplicity loans are not included in the aggregate.

Your broker should know all this (and make sure that you know all this, too), that's what brokers are for!

Cheers
Kristine
 
Yes I agree with Kristine.

The breakfree package however only now offers a 0.60% discounts for loans (kristine may have missed this announcement recently) between $250k and $750k. There is a chance of still obtaining a pricing approval for the 0.70% with the chances of success increasing with the higher the total lending volume.

The other option is to take your bisiness elsewhere if they don't (subject to weighing up exit fees/costs & the savings made).

Regards
Steve
 
The Breakfree package is PERFECT for those reasons alone... but don't you need a credit card with ANZ (something I don't want) before you can get the Breakfree Package. And isn't there a large annual fee to have this package as well?
 
The Breakfree package is PERFECT for those reasons alone... but don't you need a credit card with ANZ (something I don't want) before you can get the Breakfree Package. And isn't there a large annual fee to have this package as well?

Hi

:)


I have the breakfree package and when you sign up for this loan a gold cc comes with it. Because I already have a nab visa card I rang up ANZ and told them that I didnt want the anz cc because I already have a cc card and one was enough for me. The lady on the phone said that you cant cancel the cc because it would cancel the breakfree loan but the way around it is to just dont activate it. So thats what I did I just didnt activate the card. No probs.
 
Hi

:)


I have the breakfree package and when you sign up for this loan a gold cc comes with it. Because I already have a nab visa card I rang up ANZ and told them that I didnt want the anz cc because I already have a cc card and one was enough for me. The lady on the phone said that you cant cancel the cc because it would cancel the breakfree loan but the way around it is to just dont activate it. So thats what I did I just didnt activate the card. No probs.

Spot on Kim.

Get the card and cut it up. Each time a replacement card is issues do the same.
If you intend doing this ensure it's the Visa Gold and not one of the reward cards otherwise you'll be stuck with an annual rewards fee. The other benifit is that should you ever intend on travelling O/S you can avail of the free comprehensive travel insurance the card offers.

NB... You would then need to use the card for the insurance option to pay for a portion of your travel costs i.e car hire, flights or accomodation. For memory it's a minimum of $200 minimum spend.


Regards
Steve
 
Ok I guess I should try & transfer my Money Saver Loan over to the Standard Variable one as I have about $20,000 just sitting in the savings account doing nothing so really should get that into an offset account asap! I'm just wondering, do I need to wait until I get another loan before I'm eligible for the Breakfree package? And thanks for the advice regarding the credit card as I definitely don't need one!
 
I think you should switch to simplicity and deposit all your extra savings into that account . This has the same effect of having an offset ac.
That way you are only paying $25 each time you withdraw. and a $200 dollar switching fee
If you go for a breakfee package there is an annual fee about 350 dollars roughly.plus your paying higher interest rates on the regular variable interest.
You may also be able to ask for a professional package loan (not advertised) which offers .5% lesser than the standard variable interest. (also be aware there is a $ 10 montly fee to set up the offset ac):)
 
Hiya Brief

Redraw for this client is probably not the best since it may cause tax deduction issues longer termf the redraws are for personal purposes.

Often in looking to save a few bucks we lose the focus on what might be important.

Rates and fees can confuse and "blind-side".

ta
rolf
 
The breakfree package however only now offers a 0.60% discounts for loans (kristine may have missed this announcement recently) between $250k and $750k. There is a chance of still obtaining a pricing approval for the 0.70% with the chances of success increasing with the higher the total lending volume.
Steve

When I got my loan for $177 K in October I got the 0.60% discount (for amounts under $250 K) When did this take effect? Perhaps I got in just before they changed it. I dunno.
 
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