Interest Offset Accounts

From: Glenn Mott

I was wondering if anyone could suggest a good lender to go with if prime consideration is to refinance, take as much cash as possible out of properties and have it sit in an offset account.

A previous lender had a product that allowed for all monies in offset account to reduce the balance on loan that interest would be charged against, effectively giving an after tax benefit of almost double the interest rate on loan. Unfortunately, my current product does not do this but rather credits the interest to the offset account, creating income.


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Reply: 1
From: Adam McGuinness

Hi Glenn

Wizard have 100% offset available at a very competitive rate.

It is accessible via internet and you can transfer money out to bank accounts when you need it, although there is a 24 hour delay on this. However when paying the monthly credit card bill, it work well for me.

I believe Wizard now have their own credit card which can be linked to the mortgage account, so it works like a line of credit. Naturally discipline is the key here.

There are no monthly fees either.

Excuse me if I sound like I am selling it (which I am not), but it is the best I have found.

If anyone can point me to one better, I am only too happy to compare.

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Reply: 1.1
From: Kellie Dutton

Hi Glenn

There are several lender with products I believe would suit you. I will email you some options.

0413 925 943
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Reply: 2
From: Rolf Latham

Hi Glenn

Most bank and Building society lenders do have an offset product as you describe, some with discounts as much as .7 % off their standard rack rate (Westpac Rocket For Example).

If you want one that works on interest only loans then Westpac does for sure and there are others that do as well.

Unless you have lots of patience then the Westpac thing may wear you out during the approval process even though it is ne of the best products.


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Reply: 2.1
From: Russell Chellew

Hi Glenn,

I agree with Rolf ,Westpac's (Bank of Melb for us Victorians)Rocket repay loan is good if you qualify for the .7% rate discount. Westpac service levels for approval have been slow.

ANZ bank offer similar rate discounts and are definitely worth considering also.


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