BankWest rate tracker offest account

[silverfish]

Hello all,

I have taken Bank West rate tracker ultra home loan (interest only) for our PPOR. I did not apply for the offset account as my broker said the loan account has the offset facility (you can move funds in and out). If I put my extra savings in the loan account and withdraw it later when I convert my PPOR to IP, does my IP loan get contaminated if the withdrawn fund is used for non-investment (eg. buy another PPOR)? Or should I open an offset account to avoid this confusion? Offset fee is $15/month.

Thanks,

sf

 

[Qlds007]

Yes the funds will be contaminated so take up the offset account offer.

 

[silverfish]

Yes the funds will be contaminated so take up the offset account offer.

Thanks Richard, I will take up the offset account.

cheers

 

[Terryw]

I agree. Best not to pay any extra into the loan if you intend to rent it out later.

 

[silverfish]

I agree. Best not to pay any extra into the loan if you intend to rent it out later.

Thanks Terry, I have taken offset account. Our MB was not aware of this, obviously.