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Hi can anyone tell me which one is better line of credit or using offset account for mortgage?
OFFSET!!!
It's money in the bank to use as you see fit and they can't take it away from you.
LOC's have terms, conditions, fees and restrictions, in many cases.
I vote for offset account.
The bank can reduce or revoke an LOC with a policy change, but cash in an offset account is cash in the bank.
On the xcoll bit..............all thats happpening with the 100 % lend is that u have the equity anyway.........sounds to me like you might be better set up with separate facilities. That being raise 20 % + costs from the existing props, then get an 80 % lend on the new place, separate to what u have already
Robs been around a while and knowns what "repayable on demand" means.
Hi Yorkie
Couple of things
the 400 k loc, is it all deductible debt, or is some of it for PPOR use ?
On the xcoll bit..............all thats happpening with the 100 % lend is that u have the equity anyway.........sounds to me like you might be better set up with separate facilities. That being raise 20 % + costs from the existing props, then get an 80 % lend on the new place, separate to what u have already
ta
rolf
3 year fixed lo doc at sub 6 % is pretty good
ta
rolf
cba are asking me to bring in a st george loan to reduce my lvr from 69% down to 45%. and then i'll be o.k, also sugeested a low doc fixed for 3 years at 5.93% which sounded not too bad.
(ta rolf)
truth is the banks can probably do what they like
LOCs in general though are a bit more troublesome in that regard.
WBC for eg has a repayable on demand clause on theirs.................not good sport that
ta
rolf