ANZ vs Westpac - Pro packages

[BestBet]

What are the main differences between ANZ Breakfree vs Westpac Premier Advantage? Which one is better or does it depend on the particular situation? What about differences in fees, flexibility, etc?

Difference I have noticed are:
- ANZ restricts the package to 5 properties
- Westpac has a lower rate by 0.05%

Some more questions I have on these loans:
- With these packages can you split one loan in 2 accounts so you can separate the deductable and non-deductable components from the one loan?

- Can you have a fee free 100% offset for each loan within the package or do you only get one fee free offset as part of the package?

- Do any/both packages offer redraw with no minimum amounts and no fees? (in the unlikely scenario that you will need it)

Thanks for your help

 

[pennyk]

What are the main differences between ANZ Breakfree vs Westpac Premier Advantage? Which one is better or does it depend on the particular situation? What about differences in fees, flexibility, etc?

Difference I have noticed are:
- ANZ restricts the package to 5 properties
- Westpac has a lower rate by 0.05%

Some more questions I have on these loans:
- With these packages can you split one loan in 2 accounts so you can separate the deductable and non-deductable components from the one loan?

- Can you have a fee free 100% offset for each loan within the package or do you only get one fee free offset as part of the package?

- Do any/both packages offer redraw with no minimum amounts and no fees? (in the unlikely scenario that you will need it)

Thanks for your help

We have the ANZ package. They matched Westpac's discount when we went back and asked them. We have both a LOC and a variable loan. On the variable loan, there is a fee for redraw and I think the minimum amount is $2000. There is a fee free offset, but not so if you can only get one account or not.

we have found their service to be good. we also had business loans with them. the on-line banking is really easy to use. it would be very difficult for us to move to another bank now.

Pen

 

[Soren Lorenson]

What are the main differences between ANZ Breakfree vs Westpac Premier Advantage? Which one is better or does it depend on the particular situation? What about differences in fees, flexibility, etc?

Difference I have noticed are:
- ANZ restricts the package to 5 properties
- Westpac has a lower rate by 0.05%

Some more questions I have on these loans:
- With these packages can you split one loan in 2 accounts so you can separate the deductable and non-deductable components from the one loan?

- Can you have a fee free 100% offset for each loan within the package or do you only get one fee free offset as part of the package?

- Do any/both packages offer redraw with no minimum amounts and no fees? (in the unlikely scenario that you will need it)

Thanks for your help

also have the anz breakfree, they limit you to 5 loans, which may not necessarily be 5 properties as far as i'm aware for exampel if you setup a LOC or whatever, i was mildly cheesed off at their 20 basis points rise recently more than others, i'll probably review again next loan - when ever that is

 

[alexlee]

Other than the technicalities and features of the various pro packages, I would be more focused on whether/how they give you the loans. By that I mean serviceability calculations, how fast they response when you apply, that sort of thing.

It's not just about the interest rate, especially if you're talking about difference of 10 or 15 bps.
Alex

 

[Rolf Latham]

Hi Alex

In my view thats a wise reply for an investor looking to grow.

The advice for a ma and pa may be different too.

Its hard to apply generalities as to what is best with package deals ..........because it depends so much on the individual circumstances.

In some cases we can be comparing a car to a car, when in fat we need a boat for the job.

FWIW, most of my clients choose wbc over ANZ because of better credit policy, no limit to the number of loans, an 85 % no lmi policy.

But, if the client wants to control valuations or wants a decent discount at variable 150 to 250 k, or wants to use HDTs then sometimes ANZ is better

ta
rolf

 

[Spectre]

also noting anz has recently made a few changes to their propack as well... discounting the equity manager rate, low docs etc.

It almost 'seems' that they are on a strong grab as they are still negotiating on rate & costs etc on top (or in my stuff they are anyways)

 

[alexlee]

For example, I went to a meeting with a CBA financial planner, who said he could get me this special package blah blah blah. I sent the documents to the CBA mortgage manager, and they came back saying I could only borrow half of what I needed.

Now, regardless of what sort of goodies the CBA package included, it's useless to me because they can't give me the amount that I want.

I suggest thinking about debt strategically. As property investors, it's buying the properties that will make us rich, not saving a couple of bucks on a credit card or saving 10 bps on the mortgage. You may well get to the point where you're tossing up between saving 10 bps on the mortgage or getting another loan.
Alex

 

[BestBet]

My current situation is that my PPoR is worth $500K with only $130K owing (currently with Resi). I’m looking to buy an investment property worth approx $700K (in 5-10yrs building and living on this IP). I already have in-principle approval from both Westpac and St George for the total borrowing.

I was looking at refinancing current loan with a pro pack at either WBC or ANZ and getting the loan on the IP within the same pro package. I assume the best way to structure it is as 3 loans:

Loan 1 secured against IP – $560K (80% of IP)
Loan 2 secured against PPoR - $175K (20% of IP + costs of purchasing IP)
Loan 3 secured against PPoR - $225K (the rest I can borrow against PPoR up to 80% of value without paying LMI)

I would put any remaining cash in a mortgage offset against Loan 3. Let me know if you think I have the structure right and any other thoughts on ANZ vs Westpac pro packages for me (or even St George)?

 

[Rolf Latham]

Hiya

Depending on your income ( and Id have to assume its reasonable) id be looking to jazz that up a little bit to get rid of that 130 k non dedictible debt.

The basic structure is fine.......................

With a slightly higher lend to say 85 % no lmi or 90 % with LMI, nd slightly modified structure u could look at using a debt recycling strategy and/or a capitalised interest approach to kill that small amount of remaiing non deductibel debt.

While till now u have probably been chewing into that home loan quite quickly, the new IP will likley slow that personal debt reduction quite quickly

ta
rolf

 

[BestBet]

Thanks for that Rolf. I’m assuming you mean setting up something like what Corsa suggested here: http://www.somersoft.com/forums/showthread.php?t=26532 which would mean:
Loan 1 secured against IP – $595K (85% of IP)
Loan 2 secured against PPoR - $130K (current outstanding balance of my loan)
Loan 3: Equity/LOC limit set up to $295K (which I will use to pay 15% of IP + costs of purchasing IP)
- All income rent going into mortgage offset against Loan 2. Personal expenses paid out of this offset.
- All on-going payments related to the IP (interest of Loan 1 + other running costs) coming out of Loan 3 (LOC) and letting the LOC balance capitalise on itself as much as possible.

So “in general” what would the next move be after the offset equals the $130K?

Also if someone moves into the IP in such a scenario, should they start renting out their current PPoR or sell it (in my instance I probably have stuffed-up the interest deductibility by not using an offset). I guess the other option would be rent out the current PPoR and buy one or two other investment properties using the equity to fund the 20% + purchase costs?

I guess I need a well informed mortgage broker and/or account to go through the options with me!

Thanks for all your help
Cheers

 

[Rolf Latham]

Hiya

Id be looking maybe do a sale to a HDT or a simialr fiddle IF it were important that u keep the now PPOR.

ta
rolf

 

[Peter_Tersteeg]

Assuming credit policies are met with either lender, I'd say the Westpac pro pack is slightly better, one of the main reasons being that it's fairly simply structured and easy to use.

That said, ANZ's package is more flexibly with trusts, is a little cheaper on the annual fees, more control of valuations and has a few other specific advantages. With a little effort it can do everything Westpacs does.

I also find ANZ a little easier to deal with, but that could just be me.

On balance, they're fairly close so I don't think it makes much difference at all.

 

[Spectre]

And noting that westpac as of late seem a bit 'slower' in getting things thru.

 

[eng]

I'm with Westpac and I'm pretty impressed with their services actually. My land settled on 31st Dec and although short of staff due to the holiday season, they manage to get it all done.

 

[Peter_Tersteeg]

I've actually found most lenders to be fairly good this holiday season. They have all been short of staff, but I think they also do a corresponding amount of business. Most of the applicaitons I submitted to various lenders went through fairly quickly.

Prior to Christmas was a different situation. Perhaps everyone wanted it done before they went on holidays.