Interest Only and 100% Off-Set Account

[lostis]

Hi Guys,

Just talking to a mate regarding a way to structure a loan.

He told me that some instituations allow you to setup an Interest Only loan with a 100% Off-Set account whereby the money in the offset reduces the Principle, thus reducing your repayments.

Does one know which instituations do this?

I just need the name of one so I can look at the fine print and measure up the pros and cons of this structure.

 

[tobe]

anz ten characters

 

[Edmond Dantes]

I got mine with CBA.

 

[want2bewealthy]

Just beware of the 'offset' features

I know with CBA your MISA offset will offset 100% on a variable loan whilst only 66% on a fixed term.

Look closely at others.

 

[Qinau]

I know with CBA your MISA offset will offset 100% on a variable loan whilst only 66% on a fixed term.

Unfortunately only 1.5% on fixed, buggers

 

[Rolf Latham]

Assuming this is for an investment property, the lenders that will do this on variable that are "mainstream" are

ANZ
BOQ
CBA
Citi
STG
NAB
WBC
Bankwest
Adelaide Bank
CUA
AMP
Suncorp
HSBC ( at last look)



lenders that dont do an offset include


ING
RAMS


This is despite a lot of blurb where they go on about "repayment offset"

Then there are the lenders that do an offset but dont reduce the payments, but reduce the principal instead, and are thus called "interest based"

Heritage ( though I hear they may have changed this)
St George Bank on owner occ
Homeside


Fixed and 100 % offset

Adelaide Bank, CUA and some others

ta
rolf

 

[Bushranger]

St George
100% offset with variable and I think 50% oofset with fixed rate.

 

[xcesiv]

Im looking to compare the hi Interst Vs the MISA myself

Im on Interst only and Fixed Rates.

I have read many times they rate for the Misa is 1.5% on fixed rate loans

I cant find a clear definition of the rate anywhere. I even asked them to send me out paperwork for the account and to detail the current rates, etc and got the forms and nothing else.

Can anyone clear this up for me.

I need to work out which is more benificial. A Hi interest Account of the MISA

Warren

 

[tobe]

The MISA is a pain in the ***. Its not a real offset, in the sense that the MISA is not transactional. If you want a true, transactional offset, go to another bank. Whether the MISA is better than a high interest account is dependant on whether you want to pay tax on the interest you get from the high interest account.

 

[Qinau]

I cant find a clear definition of the rate anywhere. I even asked them to send me out paperwork for the account and to detail the current rates, etc and got the forms and nothing else.

Can anyone clear this up for me.

It's listed on the current rates page, does that help any?

http://www.commbank.com.au/personal/apply-online/download-printed-forms/home-loan-update-002842.pdf

Cheers