Both actually:
1. the broker is no longer paid a trail commission.
2. the loan being re-written contributes to the staff person's KPI and usually to their bonus.
How I wish branch staff had the same level of mandatory disclosure as brokers do...
Breaking Free from ANZ Break FREE
- Thread starter HomeBuyAU
- Start date
Both actually:
1. the broker is no longer paid a trail commission.
2. the loan being re-written contributes to the staff person's KPI and usually to their bonus.
How I wish branch staff had the same level of mandatory disclosure as brokers do...
I'd say you have a look at it and look at the features tab in the middle.
The fact you dont know you can get free valuations etc means you dont really have any idea whats involved in the fee your paying.
So obviously there is no way you can be truly maximising your benefits.
http://anz.com.au/personal/home-loans/compare-home-loan/breakfree-home-loan/
Yes, I am on it as well. 3 loans on it, credit card, few savings accounts, offset account, assured credit facility.
Some of the ones you might not be using
Valuation administration fee (three waivers per package p.a.)
Renegotiation fee (one waiver per package p.a.)
The fact you dont know you can get free valuations etc means you dont really have any idea whats involved in the fee your paying.
So obviously there is no way you can be truly maximising your benefits.
http://anz.com.au/personal/home-loans/compare-home-loan/breakfree-home-loan/
Yes, I am on it as well. 3 loans on it, credit card, few savings accounts, offset account, assured credit facility.
Some of the ones you might not be using
Valuation administration fee (three waivers per package p.a.)
Renegotiation fee (one waiver per package p.a.)
Id think hard about this
the 50 k or so is TAX PAID personal money.
Chucking that into a redraw may cause tax issues
seek specific tax advice I suggest
ta
rolf
Ok that is good to know. Everyone has gone home now so I will have to wait till the morning and I hope they have not done a hit on my credit file before I stop it if the accountant says I should not go ahead with it ....
I would rather put $50k into an offset than the loan itself.
1. Better for tax reasons (assumption)
2. Redrawing all the time back to your savings account is more hassle than just taking funds out of the offset account directly.
3. The repayments can come out of the offset account as well, much easier than redrawing back out to the savings account just so the bank can take the repayment out each month.
4) Redrawing on your loan regularly with the balance going up is going to look a bit crook to any loan assessor or computer algorithym...you never know when that might be a factor.
In summary you would want the rate difference to be significant as well for my 2cents worth
1. Better for tax reasons (assumption)
2. Redrawing all the time back to your savings account is more hassle than just taking funds out of the offset account directly.
3. The repayments can come out of the offset account as well, much easier than redrawing back out to the savings account just so the bank can take the repayment out each month.
4) Redrawing on your loan regularly with the balance going up is going to look a bit crook to any loan assessor or computer algorithym...you never know when that might be a factor.
In summary you would want the rate difference to be significant as well for my 2cents worth
We just switched from ANZ to MacBank, because of a bad valuation with ANZ when we were buying our new PPOR.
I miss ANZ!
MacBank seems much more complicated (or perhaps I'm just getting old!).
Now I have a separate card for EFTPOS and visa, and a different one again for deposits. internet banking was much easier on ANZ. and now we have to change all of our direct payments etc.
Its so much hassle to change banks........
I miss ANZ!
MacBank seems much more complicated (or perhaps I'm just getting old!).
Now I have a separate card for EFTPOS and visa, and a different one again for deposits. internet banking was much easier on ANZ. and now we have to change all of our direct payments etc.
Its so much hassle to change banks........
I have to speak to my accountant when he is back later today but I have found out there is no fee to take money out of the redrawl but it must be $2,000 or more and it just gets shifted over to my savings account (that I guess would be my offset account previously).
I have looked into how the tax works in each case but I'm still not really understanding it completely and weather it would have any real impact on me anyway.
I have looked into how the tax works in each case but I'm still not really understanding it completely and weather it would have any real impact on me anyway.
The tax stuff is your main problem here. What you're doing will likely mean your investment loan would no longer be tax deductable. If you've got extra money that you've earned and you want to reduce an investment loan, you need an offset account.
The person you're dealing with in the branch almost certainly won't give you advice on this. You need to be taking to an investment savvy broker about structuring your loans properly.
I do quite a bit of business with the ANZ, but given the loan amount and what you've described your needs to be, they would not be the lender I'd recommend.
I would have seen a good broker, someone experienced like yourself or one of the other ones here but I was just hoping for a quick change without much fuss with the same bank. Plus my income is very low at the moment and another reason I did not want to go to too much trouble with this. I was out all day but sent an email to accountant this morning but he never replied so I will call him tomorrow and see what he says...
If your income is low at the moment, do you really want to chuck all of your savings into the home loan? They might just not let you redraw it. To me the annual fee is just a cost of doing business. I really can't imagine that you'd save too much from changing away from your current structure.
Is that really possible? I thought I would still have access to it anytime I like? This is important, actually critical as I will need that money when I travel.
It's possible, although not done very often. It usually happens when you start missing payments or they get nervous about you. Again, best option for your savings is in an offset account instead of redraw.
If they don't have a reason to refuse the redraw request they won't. It's only if you are late and/or have too much exposure with them.
Ok thanks for the replies. My accountant just said it would be a bit more work separating business expenses etc with the redrawl option otherwise it would not affect me that much. I might just go with it. I should not have any problems since I will have cash in the bank and the apartment is only slightly negative but growing in capital since it's quite close to the city centre.
In my opinion this is very dangerous advice from your accountant!
This could result in the interest you pay not being 100% deductible when you re-draw to use the money for travel. Your repayments would also then have to be split between the deductible and non-deductible parts of the loan
I would definitely seek the advice of an alternate accountant that is IP savvy as the effects could be long term.
In my opinion this is very dangerous advice from your accountant!
This could result in the interest you pay not being 100% deductible when you re-draw to use the money for travel. Your repayments would also then have to be split between the deductible and non-deductible parts of the loan
I would definitely seek the advice of an alternate accountant that is IP savvy as the effects could be long term.
although not specifically applicable here Domjan v ATO might give you an indication of what sort of issues you may run into
If your loan is purely interest only, and you only make a few redraws, and don't credit any income into that account i.e. the loan, then you may get away with it..............
But why the risk for so few dollars?
ta'rolf
While on the subject of "Break Free" can someone explain to me the comparison rate please.
We are getting 6.3% SVR with a 6.4% comparison and am considering locking in for 2 years at 5.8%, that is until I saw that the comparison rate is 6.94%.
What does it mean?
http://www.anz.com.au/personal/home-loans/rates-fees/
We are getting 6.3% SVR with a 6.4% comparison and am considering locking in for 2 years at 5.8%, that is until I saw that the comparison rate is 6.94%.
What does it mean?
http://www.anz.com.au/personal/home-loans/rates-fees/
