best IO loan with offset account

[collie]

What is the best product/deal at the moment for an IO loan for investment property with offset account attached. Offset account needs to be fully transactional with cheque book and visa debit card; idea is to put all income sources into offset then use cash only as needed.

Thanks, Collie

 

[Qlds007]

It is like saying how long is a piece of string.

There are so many variables and client specific requirement it is not funny.

What makes a great loan for one does not necessarily make a good loan for another client.

 

[Peter_Tersteeg]

I'm not sure about the Visa debit card, but here are so many that can meet the other criteria:

Adelaide bank
AMP
ANZ
BankWest
Homeloans Limited
Homeside Lending
Pioneer
St George
Suncorp
Westpac

There's lots of others, these are just the one's that quickly come to mind. The 'best' lender will depend on lots of different factors.

For example:
I like Homeside because they're backed by the NAB and have fairly low fees if it's just one loan account.
I like Suncorp because you can have multiple offset accounts offsetting a single loan account (an account for holiday savings, an account for day to day transactions, etc).

The right product will depend on your circumstances. Most offset accounts have most of the features you've asked for.

 

[collie]

Thanks

Hey you guys are sure quick, thanks for your replies.
Collie

 

[collie]

Structure

Would there be any benefit to putting all income from all sources into offset account and then living off credit card for interest free period then paying out credit card before incurring interest, or is it better to just use offset account as a general transaction account using as needed to pay bills etc.
The Suncorp option with multiple offset accounts sounds great, thanks Peter will be in touch if we decide to go through with loan.

Thanks again,
Colette

 

[Qlds007]

Yes certainly if you can keep as much of your money in the offset account for as long as possible by using a credit card then certainly you will save $$$ on your home loan.

Just make sure that where you have non deductible interest you always offset this first before offsetting any deductible debt.

 

[Peter_Tersteeg]

Would there be any benefit to putting all income from all sources into offset account and then living off credit card for interest free period then paying out credit card before incurring interest, or is it better to just use offset account as a general transaction account using as needed to pay bills etc.
The Suncorp option with multiple offset accounts sounds great, thanks Peter will be in touch if we decide to go through with loan.

Thanks again,
Colette

Lots of people do this and it does save you a little money. The only catch is you have to stay within a budget to make sure you don't spend more than you earn so you can still pay off the credit card every month without eating into your savings.

 

[collie]

Calculators

Is there anywhere online that you could compare the two senarios I outlined? The total income per month would be around $6,000

Thanks
Col

 

[Peter_Tersteeg]

If you PM me, I'll send you a spreedsheet I've got on this. I'll send it tomorrow morning.

 

[Boyler_Room]

If you PM me, I'll send you a spreedsheet I've got on this. I'll send it tomorrow morning.

I was about to say the same thing, but PT has got it covered.

 

[Rolf Latham]

We can exclude one lender straight up.

Commbank is out then

Their MISA isnt "transactional"

Heritage is put because its "interest" based

And STG is not going to work if you ever turn it into a PPOR, coz they will only allow proper IO offset on IPs.

ta
rolf