Interest in advance

[MelbGal]

Hi everyone,

I am thinking about interest in advance for one of my IPs for this year only because my income will reduce temporarily next year and I want to maximise the tax deductions this coming tax time.

I'm only looking at one year at this stage and think the lowest rate is nab with their choice package 4.89%

Has anyone achieved any better rates?

 

[Aaron_C]

No that sounds like a pretty good rate for interest in advance.

 

[jonmardell]

Hi everyone,

I am thinking about interest in advance for one of my IPs for this year only because my income will reduce temporarily next year and I want to maximise the tax deductions this coming tax time.

I'm only looking at one year at this stage and think the lowest rate is nab with their choice package 4.89%

Has anyone achieved any better rates?

that is as good as gets at the moment.

 

[MelbGal]

Thanks all for your quick responses

 

[MelbGal]

Hi all, I am re-opening this thread again- hope you don't mind all the questions .

My question for those that have refi their loans to interest in advance do you drawdown and pay the interest on 30 June to maximise the next 12 months in deductions or did you play it safe and bring it in earlier say mid-June.

My usual interest in arrears payments are usually due end of month so I can't easily time after this. I'm a little worried about the bank stuffing up so I think I've already answered my question and will drawdown and finalise the loan in early-mid June once the papers are finalised.

Is that what everyone else has done or I am being too overly cautious? It's my first time with an interest in advance loan.

 

[jonmardell]

play it safe and do it as early as possible. i know of a few people that had not had the interest drawn down by NAB in time!

Hi all, I am re-opening this thread again- hope you don't mind all the questions .

My question for those that have refi their loans to interest in advance do you drawdown and pay the interest on 30 June to maximise the next 12 months in deductions or did you play it safe and bring it in earlier say mid-June.

My usual interest in arrears payments are usually due end of month so I can't easily time after this. I'm a little worried about the bank stuffing up so I think I've already answered my question and will drawdown and finalise the loan in early-mid June once the papers are finalised.

Is that what everyone else has done or I am being too overly cautious? It's my first time with an interest in advance loan.

 

[wylie]

We start the ball rolling mid May. We are sent paperwork to send back with our choice to pay the interest by cheque, have the bank draw it from an account, or pay it at a branch. We always nominate our offset account and have the bank draw it from there, usually during the last week in June.

Do ensure you keep an eye on things though, because every year our bank stuffs it up somehow. One year we arranged in the same letter for five loans to be fixed. They did two and simply ignored the rest. After much frantic follow up, they didn't get it done in time, but did write us a letter for the tax man if it was questioned.

My dog could handle things better...

 

[Aaron_C]

Which lender was this Wylie?

 

[wylie]

Westpac. I now make sure I don't take any holidays in that last two weeks.

There has been a problem every year. Fingers crossed for this year, but I'm not holding my breath.

 

[MelbGal]

Thanks all. I started the ball rolling early May and glad I did as the bank wanted to reval the properties to change to this type of loan. I will definitely get the paperwork sorted and drawdown well before 30 June.

 

[MelbGal]

I had to just come here and vent...!

I am (still) in the process of refinancing my loan with NAB (its been over a month now) and whilst they seem to be very nice people, they just don't seem to have any sense of urgency and their process is so slow and frustrating.

Has anyone else been through what I am going through and can relate or am I just being impatient?

 

[Aaron_C]

That's the issue with big companies. Things always have to be done by process

 

[MelbGal]

That's the issue with big companies. Things always have to be done by process

I've come very close several times to move my banking elsewhere.

Strange though, I haven't had this issue with another of the Big4 but that's because I usually deal with one of their third party brokers.

I find dealing with general branch staff or phone staff is where you encounter issues - they seem to be too busy doing other things.

 

[tobe]

I've come very close several times to move my banking elsewhere.

Strange though, I haven't had this issue with another of the Big4 but that's because I usually deal with one of their third party brokers.

I find dealing with general branch staff or phone staff is where you encounter issues - they seem to be too busy doing other things.

follow the money. broker get paid when they have happy customers. branch staff have a whole wack of KPI's and still might be let go at the end of the month for unrelated reasons.

that said, some bank systems seem to be designed for 'going postal', its not always the people's fault.

 

[Brady]

follow the money. broker get paid when they have happy customers. branch staff have a whole wack of KPI's and still might be let go at the end of the month for unrelated reasons.

that said, some bank systems seem to be designed for 'going postal', its not always the people's fault.

Who would of thought another NFI post from a broker.

Brokers get paid for writting the business upfront and trail commission no impact on the payment from a service point of view. Definetly will get referrals and repeat business from providing good service same as bank staff and really every single business.


I will write around 4 brand new loans every week, along with approx 2 top ups and several other enquiries... From these there is more than 100 possible customers who could be contacted to rate my service out of 10... If I provide service that is less then 9/10 my employee takes that as a 0 as they expect me to provide excellent service, if i happen to get five 8/10 or less in a 6 month period I can close my gate for any bonus.

And yes you might say branch staff get paid salary, but bonus is where good money can be made.

Dont know what you mean for unrelated reason, but I can guarantee that if they aren't giving good service they won't last long.

As I've said before if it's a broker banker or any business if they aren't providing you the right level of service you shouldn't be with them, look elsewhere.

Before finding this forum I honestly knew of only 1 broker that I would actually recommend, after benig on this forum there are many that I would and do recommend... And there are some on here who I think are useless

 

[tobe]

Whats an NFI? Oh, I think I worked it out. Well, your entitled to your opinion. Ive been a broker for quite some time. During that time Ive dealt with numerous interactions between my clients and banks.
In the old days two of the big four would actually have their teller staff be rude to broker customers, and refuse to deal with them. Their bank managers, and lending staff would try to rewrite the deal.
Thankfully that atitude is slowly changing.

There are good banks and bad banks. Very few bank staff have the time to spend on good customer service, especially when its not part of their specific KPI's, like internal refi's and top ups, changes to repayment type etc. Some banks systems actually retard good service.
Im sure there are good people who work in banks, in fact I know there are, and when I come across them, I refer my clients to them where possible. the trouble is, they dont seem to stay in a particular role, or particular bank for very long.

Ill be sure to refer you any clients I have who have banking needs in SA if I ever get the chance.

 

[MelbGal]

OP update to update/close off this thread.

One year interest in advance was completed a week before the 30 June (phew). Went with one of the Big 4 and ended up with 4.79% rate for one year which was an extra 0.1% off.

Happy with the outcome, however sure that rates could still go down a tad bit this year but for me this was a better outcome for my tax circumstances (paying interest in advance).