CBA no offset account w/ IO!

[s050399b]

My loan just settled like 2 weeks ago with CBA,
Interest only + offset (misa)

btw, with MISA, they said it's not transactional, whcih is wrong. But the thing is, every amount enter and leaves the offset must be higher than $500

1) I got a bank card which I can withdraw from offset
2) I have tried to transfer money into a 3rd party account and it works

- it cannot do BPay; have to transfer to SL account, and SL to Bpay
- it cannot do any amount less than $500; transfer amount + 500 and transfer 500 back,

haha~

 

[MC1]

A lot better options than Misa if you're looking for an offset.

Unless CBA is your only option, look for another offset that is true 100%

 

[josko]

Bradsdad the sole reason I was attracted to them was because I do all of my banking and share trading through commbank and commsec. I will now talk to a mortgage broker about my options. The lady at the bank was adamant that banks do not allow you to have offset accounts attached to Interest Only loans, and that they only do this for P+I loans. I questioned her on this but that was her stance. I am not sure what has gone wrong here if everyone on this forum and everywhere else I have read suggests that IO + offset is the way to go. It seems very strange.

At least you realise now. SO many people are afraid to step out of their comfort zone for one reason or another. Usually it's because they have been dealing with the same bank for years and feel the bank is giving them some sort of priveledge. 99% of the time, this is just not the case.

As MC1 suggests, ST George's Offset is not your "true" offset. You won't hear that from them either.

Regards JO

 

[Spectre]

On a tangent...
You go back about 7-8 months ago nab was on the nose and westpac and cba were the champs

Think westpacs share of market is now declining and guess who's picking it up...

 

[gooram]

A lot better options than Misa if you're looking for an offset.

Unless CBA is your only option, look for another offset that is true 100%

CBA offset is 100% offset. What do you mean by "true" 100%?

 

[Jamie M]

Hey Tambn,

I'd be taking advantage of the services of one of the knowledgeable brokers on this forum.....they'll have the correct answers to your questions.

 

[PeterC]

btw, with MISA, they said it's not transactional, whcih is wrong. But the thing is, every amount enter and leaves the offset must be higher than $500

people refer to something as a transaction account when 'everything works like a normal account'. only half the things do on a MISA, so its not good to try and say otherwise, especially if someone skim reads and somehow gets the impression the MISA is 'full' transactional account.

but, i cant really see $500 minimum as a big deal. if you want to put $20 into the account, just withdraw $500 and deposit $520? (or arent the transfers instant, are the 'lost' somewhere for a day?)

 

[jaycee]

CBA redraw on P&I loans have a $500 minimum withdrawal, but I can pay extra into it any time I like.

It's not a big deal, but why have to mess around in the first place

 

[josko]

Interesting that a bank should have a product with the Acronym MISA..LOL.

Regards JO

 

[jaimeandrenee]

CBA offset is 100% offset. What do you mean by "true" 100%?

correct me if im wrong 100% offset (true ) is that the interest is calculated uopn interest owed not principal?

 

[ARF]

but, i cant really see $500 minimum as a big deal. if you want to put $20 into the account, just withdraw $500 and deposit $520? (or arent the transfers instant, are the 'lost' somewhere for a day?)

That's what I do all the time. When the broker told me they had the $500 minimum transaction rule, he said it was to "reduce the amount of transactions from people's MISA accounts." Clearly that's a crock, because instead of taking $20 from the MISA (one transaction), I have to take $520 and put $500 back (double the amount of transactions!). Personally I think it is because as soon as you take out the $520, the interest offset for that day does not count (i.e. the interest offset is calculated based on what money has been in the MISA for the 24 hours of the day - so you lose that $520 of offset, instead of just $20). But I guess they won't tell you that!

 

[bcoombs]

Offset and Interest only

I can get you offset interest only reducing your monthly repayments. Most don't allow this. Since CBA are forcing brokers to write a certain amount of loans with them, I am not accredited with CBA. However banks do have different loans and products between brokers and the branch. Depending on which channel is making them more money! Brokers tend to do more investment loan structuring and lo-doc.

Regards

Brett Coombs
Chase Loans
0421323699

[email protected]

 

[jrc77]

For one of the people with a CBA MISA:

1. Can you set your CBA home loan payments to come out of the MISA automatically?
2. Can you set a direct debit to come out of the MISA? (so basically want to pay home loan payments from another lender through direct debit off the MISA).

Thanks,

Jason

 

[Rolf Latham]

Hi Brett

Almost all lenders product is of that nature,even the CBA's although it's a dog to use.

Some obvious lenders that dont for owner occs are HBS and STG, im sure there are others.

The minimum loan numbers model employed by CBA will become more common place. While I dont agree with that in general, there is argument that if one isnt writing x loans a year or so one isnt getting the appropriate product exposure or scenario exposure and present a liability to the client and oneself.

On the other hand, this would mean that more than half of MFAA membership would be booted out because the last stats I saw was that the average gross revenue was less than 70 000 per year. That was pre GFC, pre comm cut and pre micro franchise.


ta
rolf

 

[twobobsworth]

For one of the people with a CBA MISA:

1. Can you set your CBA home loan payments to come out of the MISA automatically?
2. Can you set a direct debit to come out of the MISA? (so basically want to pay home loan payments from another lender through direct debit off the MISA).

Thanks,

Jason

1) No
2) Same thing as 1)

 

[bcoombs]

Hi Brett

Almost all lenders product is of that nature,even the CBA's although it's a dog to use.

Some obvious lenders that dont for owner occs are HBS and STG, im sure there are others.

The minimum loan numbers model employed by CBA will become more common place. While I dont agree with that in general, there is argument that if one isnt writing x loans a year or so one isnt getting the appropriate product exposure or scenario exposure and present a liability to the client and oneself.

On the other hand, this would mean that more than half of MFAA membership would be booted out because the last stats I saw was that the average gross revenue was less than 70 000 per year. That was pre GFC, pre comm cut and pre micro franchise.


ta
rolf

ROLF

So on your brokerage contract what do you say? recommended CBA because they'll cut my accreditation? Generally most of my deals are refinance from CBA, because of frustrations like this very question. 90% of the scenarios I put up, CBA is not in the top 3 lenders to compare.
As for MFAA they will be irrelevant once regulation comes in, they are already trying to increase broker requirements to try and position themselves. What annoys me is there are no bank requirements to us. In fact no extra requirements to the consumer. Most of the questions in this forum I am reading is because of moronic bank staff. However they will be exempt from regulation, because they work for the dear old trust me bank.

Storm Financial is a classic case of what results in regulation.

 

[Spectre]

...... that the average gross revenue was less than 70 000 per year. That was pre GFC, pre comm cut and pre micro franchise.

If you're MBing and under 70k pa t/o then its time to sell up

 

[Amadio]

Storm Financial is a classic case of what results in regulation.

This may be a deviation off the thread topic, but could you explain your opinions on this a little more? I had presumed that there must have been too few regulations for it to have happened the way it did.

 

[Rolf Latham]

Hiya Brett

Im not havng a go at you for not havng CBA accred. Thousands dont have it

And we have some medium size aggregators that are promoting that its ok to not have most of the mainstreams on ur panel.

Personally, I dont have an issue with this since I had one mainstream that was on my black list for 18 mths. I just refused to deal with them by choice.

The time that gets tough is where u know its the right choice for the client and you need to vote with your wallet and give them the card of another broker.

There are times where lender X is the only practical lender that will do the deal.

The MFAA will not become any less of a toothless tiger than it already is, for I suspect the lenders will still want an industry body with some skin in there.

I have a personal belief with Storm, and it doesn have much to do with regualtion, more with blind sided business people and bankers, borrowers, and in some cases, non existent risk management on behalf of clients that truly didnt know any better, and should never have been exposed to such risks.

ta
rolf

 

[Rolf Latham]

If you're MBing and under 70k pa t/o then its time to sell up

Richard, do the numbers...............its scary..........and off topic

There are succesful broking business models built around upfront incomes of half that.


ta
rolf