Finance

[WebBoard]

From: Mike .


100% offset accounts
From: TW
Date: 7/16/00
Time: 5:03:44 PM

Does anyone know of a lender that offers a 100% offset account on a interest only loan?

I think these are better than a line of credit because your savings are kept separate. If you have a LOC and deposit money in it and take it out again the tax dept won't allow the extra interest to be claimed. whereas with the 100% offset it is a totally different account.

TW

 

[WebBoard]

Rick

Reply: 1
From: Mike .


Re: 100% offset accounts
From: Rick
Date: 7/17/00
Time: 11:14:44 AM

I'm with NAB and they don't offer anything like that, at least my Personal BM hasn't/won't tell me about it.

I went to ANZ and spoke to "a girl behind the desk" and she said "No" but I have been told by a mortgage broker that they do.

I've also been to Suncop-Metway and they offer an savings account offset against an IO loan but the savings account's interest rate is about 2% below what you are being charged on your IO loan.

I haven't done much investigation yet, but I hope this helps.

Also, I've posted a couple of times but haven't got much response at all. The questions I have posed may be complicated and indepth but I am looking for answers. Does anyone have any suggestions or would the people on this forum not really have the answers - I'm not trying to be sarcastic or anything, I just don't know how else to word it.

Thanks for all your help,

Rick.

 

[WebBoard]

Red

Reply: 1.1
From: Mike .


Re: 100% offset accounts
From: Red
Date: 7/17/00
Time: 4:42:35 PM

The bank of Queensland has a 100% offset account, but they do not offer any internet or phone banking. So you have to do your banking the old fashioned way...

Regards Ross.

 

[WebBoard]

Ed

Reply: 1.1.1
From: Mike .


Re: 100% offset accounts
From: Ed ([email protected])
Date: 7/18/00
Time: 9:33:40 AM

Just go to one of the many loan comparison sites on the web, they will list all the lenders who offer various kinds of loans.

Ed

 

[WebBoard]

Andrew G

Reply: 1.1.1.1
From: Mike .


Re: 100% offset accounts
From: Andrew G
Date: 7/18/00
Time: 1:14:25 PM

Rick & TW

Contact a mortgage broker. It is their job to know what is available out there and from my experience they are generally pretty good at it. They are not bogged down to one institution and they get paid when you get the loan you want, which helps motivate them. They cost you no more than running around thousands of institutions as you still pay the application fee anyway.

Hit your local yellow pages and look up mortgage brokers and start calling. You will have your answer (and chances are your approval) by the end of the week.

Rick I have seen these kind of posts before and not responded as I think you should always go to someone who specialises in the information you are after. The broker is the person for this question especially with a question about retail products like these.

They will give you the solution you are after.

Andrew.

 

[WebBoard]

Rick

Reply: 1.1.1.1.1
From: Mike .


Re: 100% offset accounts
From: Rick
Date: 7/19/00
Time: 4:16:10 PM

Andrew G,

Thanks for your response.

Rick.

 

[WebBoard]

Pierre

Reply: 1.1.1.1.1.1
From: Mike .


Re: 100% offset accounts
From: Pierre
Date: 7/18/00
Time: 6:23:16 PM

You have a connection to the internet - use it!!! Try typing "100% Offset Account" into an Australian search engine and you will come up with loads of good hits. I tried a couple of searches and found 100% offset accounts at the following big and small banks/CUs in about one minute.

NAB: http://www.national.com.au/property/106_v.html


ANZ: http://www.anz.com.au/australia/persbnk/prdsrv/investment/fixed.asp

BankWest: http://www.bankwest.com.au/persb/loans/mortgage_shredder_offset.asp

FirstAustralian: http://www.firstaustralian.com.au/products/resident.htm#wol

Credit Union Australia: http://www.cua.com.au/home_loans/

You can also try mortgage brokers online, http://www.eloan.com.au, or any number of other financial sites that offer searches for the right kind of finance.

Another excellent tool is a program called Loan Comparison System which can be requested from this site: http://www.ts.com.au/loancomparisonsystem.htm

The program comes with current data provided by a third party on just about every loan available. It compares rates, AAPRs, fees, features and just about all you need to know. I recommend this for anyone seeking finance.

It's a big ole' world of information on the net - try and find the info yourself rather than relying on other people to tell you that NAB or ANZ does not have these kinds of facilities. I don't mean to offend those posters that have said this - but it just goes to show you that you can't trust all the information you read on this or any forum, and you should always try to do your own research.

Pierre

 

[WebBoard]

Rick

Reply: 1.1.1.1.1.1.1
From: Mike .


Re: 100% offset accounts
From: Rick
Date: 7/19/00
Time: 4:47:50 PM

Pierre,

TW was after an offset facility for an Interest Only loan.

NAB offers offset on P&I only, National's Variable Rate Home Loan, which is the link you put in your document. They do have a LOC, but the point raised wrt undeductability of interest on deposits is a valid argument.

As I said, a mortgage broker that I spoke to said that ANZ does have such a facility.

The internet is a great tool, but the financial institutions' sites do not usually spell out exactly what the loan facility offers, e.g. I went to the NAB site and it did not specify whether it was IO or P&I.

It took one phone call and one minute of my time to find this information out. Same with the ANZ.

Andrew G raised a valid point about seeking the advice of a mortgage broker.

Rick.

 

[WebBoard]

TW

Reply: 1.1.1.1.1.1.1.1
From: Mike .


Re: 100% offset accounts
From: TW
Date: 7/20/00
Time: 10:21:36 PM

Thanks Rick

I rang the ANZ and they said the 100% offset was only available on the PI loan. I'll have to ring a broker. . I just wanted to know if anyone has heard of this or has one.