Hi All,
Was just doing some of my own research of the current proffesional packages.
They all seem too offer the same benefits ie discounted rate, fee free credit card, other product disconts,etc all for an annual package fee of between $340-$395 with rates ranging from 5.04%(NAB) to 5.21% (ANZ) and everyone else in between.
My question is why would someone who wanted 100% offset and regardless if it was owner occupier or investment purpose not consider the bankwest rate tracker? Or even Hertitage at 4.82% with $250 annual fee.
Lets start with bankwest rate tracker. Current rate is 4.85% (tracks the average of the big 4 and discount of 0.90%) then reverts to lite product or something at 5.58%.
However, even though the offset expires after the 3 year period, it only cost $350 to break the loan for discharge no early repayment or break costs, and application fee $595, no montly or annuel fees. By my calcs on a $300k loan over 3 years compared with say a CBA at 5.14% you would save almost $3000.. allowing for the break costs,etc
So am I missing something? what are the downsides of that strategy besides hassle of switching lender or to different product after 3 years? which lets face it most people from what I have read refinance every 3 years or so anyway and products and rates are always changeing anyway.
Is the bankwest offset account a big let down vs the big 4? And why not heritage? (though i have heard only P & I for their 100% offset acct so that would be a negative).
be great to hear the formites thoughts and feedback.
rgds,
ker
Was just doing some of my own research of the current proffesional packages.
They all seem too offer the same benefits ie discounted rate, fee free credit card, other product disconts,etc all for an annual package fee of between $340-$395 with rates ranging from 5.04%(NAB) to 5.21% (ANZ) and everyone else in between.
My question is why would someone who wanted 100% offset and regardless if it was owner occupier or investment purpose not consider the bankwest rate tracker? Or even Hertitage at 4.82% with $250 annual fee.
Lets start with bankwest rate tracker. Current rate is 4.85% (tracks the average of the big 4 and discount of 0.90%) then reverts to lite product or something at 5.58%.
However, even though the offset expires after the 3 year period, it only cost $350 to break the loan for discharge no early repayment or break costs, and application fee $595, no montly or annuel fees. By my calcs on a $300k loan over 3 years compared with say a CBA at 5.14% you would save almost $3000.. allowing for the break costs,etc
So am I missing something? what are the downsides of that strategy besides hassle of switching lender or to different product after 3 years? which lets face it most people from what I have read refinance every 3 years or so anyway and products and rates are always changeing anyway.
Is the bankwest offset account a big let down vs the big 4? And why not heritage? (though i have heard only P & I for their 100% offset acct so that would be a negative).
be great to hear the formites thoughts and feedback.
rgds,
ker