CBA Mortgage Advantage
- Thread starter Nards
- Start date
Hello all.
The streamline (everyday a/c) is fully transational
The MISA(offset) is a bit more restrictive. You need $1000 minimum in the a/c for it to offset anything and minimum redraw is $500. It does offset fixed rates but it is a partial offset account. So, as opposed to the other offsets, it has its pros and cons. You can have your MISA attached to your atm card but the min you'll be able to pull out is $500.
You can direct credit to the MISA a/c, it has its own BSB. But you cannot direct debit from the account and you have to do transfers yourself
From memory, we used to be able to set up a manual transaction from the misa to other accounts, think you can still do this on netbank, bearing in mind the $500 restriction
As opposed to their home loans, you can direct credit to them as well. BSB is 062-370 then the loan account number regardless of state or which branch you took it out at.
So its an offset but strings are attached.
I remember when I spoke to one of the execs with saying they should combine the offset and the streamline (which cba knows has flaws) the exec's response was customers dont want that.
I had a bit of trouble getting my eyes to roll back to be able to see again.
Think about how banks make money with peoples cash.
Hope that gives you a bit of insight into the product a bit more.
The streamline (everyday a/c) is fully transational
The MISA(offset) is a bit more restrictive. You need $1000 minimum in the a/c for it to offset anything and minimum redraw is $500. It does offset fixed rates but it is a partial offset account. So, as opposed to the other offsets, it has its pros and cons. You can have your MISA attached to your atm card but the min you'll be able to pull out is $500.
You can direct credit to the MISA a/c, it has its own BSB. But you cannot direct debit from the account and you have to do transfers yourself
From memory, we used to be able to set up a manual transaction from the misa to other accounts, think you can still do this on netbank, bearing in mind the $500 restriction
As opposed to their home loans, you can direct credit to them as well. BSB is 062-370 then the loan account number regardless of state or which branch you took it out at.
So its an offset but strings are attached.
I remember when I spoke to one of the execs with saying they should combine the offset and the streamline (which cba knows has flaws) the exec's response was customers dont want that.
I had a bit of trouble getting my eyes to roll back to be able to see again.
Think about how banks make money with peoples cash.
Hope that gives you a bit of insight into the product a bit more.
For fixed rates, most offset accounts are partial, so only a percentage of the funds in them offsets the loan.
For example, if a 40% offset account is used, and the offset account balance is $10,000 then only $4,000 will be used to calculate the interest benefit.
For example, if a 40% offset account is used, and the offset account balance is $10,000 then only $4,000 will be used to calculate the interest benefit.
Correct. I'm with CBA and have an offset account (MISA). Everything that has been said about is correct. The way I use it is I put all my cash (rent, pay etc) into the MISA as it comes in and put all my expenses on credit, then when the bill comes each month transfer the cash onto the credit card.
There are a lot of ways around the $500 minimum though. If I only want to withdraw $200 from the bank, I'll transfer $700 from the MISA to the streamline, then transfer $500 straight back as there are no fees for transfers. Takes a couple of extra minutes but does the job for me.
The MISA is also attached to my credit card, as a 'cheque account', so I have 1 credit, 2 savings and 1 cheque account connected to my card.
BR
If the rates are NOT fixed, is the offset still partial, or does the full amount offset the loan?
Also, can your wages, rent etc, be paid direct into the MISA, or does it have to be paid into the streamline, and then transferred to MISA?
Nards
if you take their 6M Disc var, 12M disc var, 1 yr gtd, or std variable the offset is 100%.
the facilities like rate savers dont have offsets. So, as opposed to some lenders, the intro rate having the offset is something of an advantage as a lot of the other lenders you have to go .70 off the bat.
However that being said, if you are MAV'ing with the application, the MAV conditions state that with the intro rates after the 1st year instead of converting to standard variable less 0.70% you'll only get 0.40%
But you can have everything paid into the MISA and then transfer it out bearing in mind the minimum transfer amounts.
NB the BSB For a misa is 062-383.
Wont work though if you didnt fill out the app forms for the misa to begin with though.
With the fixed rates.
Trying to find the info, but long and short of it is say if you have $20k in a MISA and a fixed rate at 7.5% and $100k owing.
the 20k in the misa only gets a partial fixed offset as it isnt one of the variable loans above.
So I think its something like 2.5% that it offsets against your rate (bit more but cant remember what it is - might be in the 3's).
So what happens is on the first 20k on your loan, you are paying 5% (7.5%-2.5%) and then on the balance (the $80k) you are paying 7.5%
As a futher option to this, If you had something like their repayment reducer facility, you could get a fixed rate at say 7.35-0.6 = 6.75% for 3 yrs (catch being they charge you 2% of your loan amt as a fee for that option - capitalised but again you can write the fee off progressively over a 5 year period) but you can carry the discount on the fixed over the term of the loan, so when it rolls off of fixed and onto variable you can refix and still get the 0.6% without paying the RR fee again.
Then if you are applying the misa to the fixed in this situation youd be about 4.25% on the 1st 20k.
Catch is also on this you cant incorporate a rr under MAV/Wealth package either so you also have to negotiate the estab fees and monthly fees.
I did use it for a few interest in advances though during my pennance at cba, and 0.80 off the advertised fixed rate using the RR.
Bit confusing huh. I went off on a bit of tangent there.
the facilities like rate savers dont have offsets. So, as opposed to some lenders, the intro rate having the offset is something of an advantage as a lot of the other lenders you have to go .70 off the bat.
However that being said, if you are MAV'ing with the application, the MAV conditions state that with the intro rates after the 1st year instead of converting to standard variable less 0.70% you'll only get 0.40%
But you can have everything paid into the MISA and then transfer it out bearing in mind the minimum transfer amounts.
NB the BSB For a misa is 062-383.
Wont work though if you didnt fill out the app forms for the misa to begin with though.
With the fixed rates.
Trying to find the info, but long and short of it is say if you have $20k in a MISA and a fixed rate at 7.5% and $100k owing.
the 20k in the misa only gets a partial fixed offset as it isnt one of the variable loans above.
So I think its something like 2.5% that it offsets against your rate (bit more but cant remember what it is - might be in the 3's).
So what happens is on the first 20k on your loan, you are paying 5% (7.5%-2.5%) and then on the balance (the $80k) you are paying 7.5%
As a futher option to this, If you had something like their repayment reducer facility, you could get a fixed rate at say 7.35-0.6 = 6.75% for 3 yrs (catch being they charge you 2% of your loan amt as a fee for that option - capitalised but again you can write the fee off progressively over a 5 year period) but you can carry the discount on the fixed over the term of the loan, so when it rolls off of fixed and onto variable you can refix and still get the 0.6% without paying the RR fee again.
Then if you are applying the misa to the fixed in this situation youd be about 4.25% on the 1st 20k.
Catch is also on this you cant incorporate a rr under MAV/Wealth package either so you also have to negotiate the estab fees and monthly fees.
I did use it for a few interest in advances though during my pennance at cba, and 0.80 off the advertised fixed rate using the RR.
Bit confusing huh. I went off on a bit of tangent there.
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Nards,
didn't you want to go with the Westpac Premier Advantage package?
didn't you want to go with the Westpac Premier Advantage package?
That was good actually... Thanks for the info
Hi Rolf,
In short, yes i did very much want to go with the Westpac loan, as discussed with you, and presented my case to the broker, detailing my reasons for this, and the pro and cons of the two packages, as mentioned in a previous post.
He was still very much in favour of the CBA loan, but said he would look into both the Westpac and ANZ packages, and get the ball rolling, if that is what we had decided..
Anyway a couple days later he came back to me saying that both the lenders wouldnt lend to us because my husband is in a new job, and has a probationary period (about 6weeks to go - he is a Emergency Management Officer on a alumina mine, and was previously a police officer for 6 years). Whether this is the truth or not I dont know..(he did tell me who he spoke to at the banks re this..). So by this stage we are running VERY short on time, so we have agreed to (reluctantly) go ahead with CBA, and manage it in some of the ways discussed in this thread. I'm hoping this wont come back to bite us too hard in the future, and when it comes time to refinance/buy again GET A DECENT BROKER!! I'm not sure if I have made the right decision, but i guess time will tell
Once again thanks for you great advice, if it wasnt for reading this forum, I would have had no idea that I wasnt getting the best package available for my circumstances...research and education are our best tools..I probably should have done mine a little earlier
Nards
In short, yes i did very much want to go with the Westpac loan, as discussed with you, and presented my case to the broker, detailing my reasons for this, and the pro and cons of the two packages, as mentioned in a previous post.
He was still very much in favour of the CBA loan, but said he would look into both the Westpac and ANZ packages, and get the ball rolling, if that is what we had decided..
Anyway a couple days later he came back to me saying that both the lenders wouldnt lend to us
because my husband is in a new job, and has a probationary period (about 6weeks to go - he is a Emergency Management Officer on a alumina mine, and was previously a police officer for 6 years). Whether this is the truth or not I dont know..(he did tell me who he spoke to at the banks re this..). So by this stage we are running VERY short on time, so we have agreed to (reluctantly) go ahead with CBA, and manage it in some of the ways discussed in this thread. I'm hoping this wont come back to bite us too hard in the future, and when it comes time to refinance/buy again GET A DECENT BROKER!! I'm not sure if I have made the right decision, but i guess time will tell Once again thanks for you great advice, if it wasnt for reading this forum, I would have had no idea that I wasnt getting the best package available for my circumstances...research and education are our best tools..I probably should have done mine a little earlier
Nards
Nards,
I would not stress too much about it; in the end it also depends how you handle the Streamline account in combination of the MISA account. Many of my clients are happy with that set up.
It is more important right now to settle in time with your purchase. You can always re-finance in a couple of years and then get the product that you want.
I would not stress too much about it; in the end it also depends how you handle the Streamline account in combination of the MISA account. Many of my clients are happy with that set up.
It is more important right now to settle in time with your purchase. You can always re-finance in a couple of years and then get the product that you want.
Nards,
The offset specifics depend on the lender and the product. A good broker will know the ins and outs of each one.
If you're comparing Westpac and Colonial/CBA pro-packs, I'd suggest the extra $95 per year with Westpac is money well spent, simply for peace of mind with regards to service.
The offset specifics depend on the lender and the product. A good broker will know the ins and outs of each one.
If you're comparing Westpac and Colonial/CBA pro-packs, I'd suggest the extra $95 per year with Westpac is money well spent, simply for peace of mind with regards to service.
Sorry to bring up an old thread but I have just purchased my 1st IP and have gone with Colonial/CBA with the MAV package and the MISA account. I'm not quite sure how i should structure the way my income goes into the respective accounts.
I already had a streamline account with the CBA prior to getting the loan which is where my pay goes into. I work 2 jobs so both pays go in there.
Should i change it so all my pay and rent from the IP go into the MISA as I don't really spend much so I don't take much out of the streamline account. I could then move $500 from the MISA to the streamline which would probably last me for the month. This should prevent me having to remember to transfer my pay and rent every week either online or over the phone.
Also I currently have a Term Deposit with another bank which has $27,000 in it. I usually lock it away for 3 months at a time at about 4.2% pa. The reason i do it for 3 months was so I could add to it when I had some extra money instead of having to wait a year.
Should I close the Term Deposit and put the money into the MISA or is it better to leave it where it is. I'm guessing that is something an accountant would have to work out.
Also finally, what happens at tax time when you want to distinguish IP expenses (deductable) from Personal expenses (non deductable) as all monies are coming from the same account. Could make personal expenses come out of the streamline account and any IP related expenses come from the MAV account. (not sure if this is allowed as it would have to go into streamline first?)
Any advice is appreciated
Thanks
George
I already had a streamline account with the CBA prior to getting the loan which is where my pay goes into. I work 2 jobs so both pays go in there.
Should i change it so all my pay and rent from the IP go into the MISA as I don't really spend much so I don't take much out of the streamline account. I could then move $500 from the MISA to the streamline which would probably last me for the month. This should prevent me having to remember to transfer my pay and rent every week either online or over the phone.
Also I currently have a Term Deposit with another bank which has $27,000 in it. I usually lock it away for 3 months at a time at about 4.2% pa. The reason i do it for 3 months was so I could add to it when I had some extra money instead of having to wait a year.
Should I close the Term Deposit and put the money into the MISA or is it better to leave it where it is. I'm guessing that is something an accountant would have to work out.
Also finally, what happens at tax time when you want to distinguish IP expenses (deductable) from Personal expenses (non deductable) as all monies are coming from the same account. Could make personal expenses come out of the streamline account and any IP related expenses come from the MAV account. (not sure if this is allowed as it would have to go into streamline first?)
Any advice is appreciated
Thanks
George
I would definately put that 27k into the offset. It's earning you 4.2%pa for starters, even the CBA will offer you 6%. But don't do that either, put it in your offset account and it is saving you 7.5% interest. Until you can find a term deposit that beats the interest rate, wack it in the offset. OR of course, use it towards a deposit for another IP?
As for seperating IP and personal expenses, I'd suggest reading Corsa's thread on "interest on interest..." (a sticky thread in the Accounting and Tax section).
Cheers,
Gooram
The MISA account is not a transactional offset account, meaning you can't really put all your pay in it and live out of it. It will end up costing you more than it saves.
I'd put your pay into your streamline account, figure out how much you need until the next pay period and put the rest into the MISA account, or transfer any remaining funds into the MISA the day before you get paid.
I'd put your pay into your streamline account, figure out how much you need until the next pay period and put the rest into the MISA account, or transfer any remaining funds into the MISA the day before you get paid.
You can't deposit directly into the MISA so you will have to do the transfers as is. With the MAV package, you can get a free gold credit card. Can you put all/ most expenses on this card & pay it off at the end of each interest free period? Only do this if you are disciplined with your spending & won't be tempted to spend more just because the money is there.
Do you have to pay much tax on the interest you earn? Do you have a PPoR loan that you can use the MISA account against? Is usually a better idea to have it in the MISA rather than a term deposit... You then have the money at call, rather than locked away. You also are getting a better rate of interest, tax free. Is your loan fixed or variable?
Are you talking about loan accounts where the money is coming from? For your loans, it is always better to keep investment & personal loans separate. If you are talking about paying the IP rates etc from your streamline, then that is fine as it is not a loan.
http://www.commbank.com.au/personal/transaction/MISA.asp
Steve
I heard that on 3 months ago. The first told me they were thinking about it over 2 years ago.
I'm fairly sure it will happen, and probably in the near future, but I wouldn't recommend deals to them on that basis right now.
I'm fairly sure it will happen, and probably in the near future, but I wouldn't recommend deals to them on that basis right now.
