Offset account for IP


I am seeking some advise on setting up an offset account for an IP.

When my PPOR is paid off I want to direct all wages and income into a 100% offset account linked into one of my IP's. I want the funds available for new investment opportunities and living expenses.

I will probably have to refinance the IP loan with a new lender because the current lender doesn't offer a 100% offset account.

Can anybody suggest a good, flexible offset account. I am not concerned with exit fees as I intend on keeping the IP for the long term.


Will the loan for the IP be interest only or P&I? My current loan is with AMP who offer a complete redraw on the loan rather than an offset. All my income goes into this account and reduces the interest on my P&I loan. I can split up to four times and have my IO loan hanging off this account with its own account number - no extra fees. You can eftpos and withdraw money as well ($8 month fees). I have not done a lot of research into different mortgages but this account is the one that suits me best for investing. There is no minimum redraw either and the balance pays down the loan.

Hi Will

For cashflow and ease of use both the Westpac and ANZ Offset products will do Offset on an interest only loan.

In addition for loan amounts > 250 000 rates are below 6 % if you meet some income criteria.

There are some smaller ones that are not bad either, like The Rock and Heritage, though Heritage one is NOT designed as a transaction acct.


Hi Will,

I agree with Rolf, the ANZ and Westpac facilities are good if you can meet the loan size and income criteria.

The Westpac facility has the added advantage of calculating the $250k theshold on "combined total borrowings" and not "individual loan size" should you need to refinance more than one IP to exceed the threshold.
Thanks everybody. I will go and have a chat with these lenders and see what they can offer.

Are there establishment fees or other charges when refinancing loans ?

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Hi Will

Shop around and you should be able to secure a "no establishment fee" deal.

Other nominal fees include de-registration/registration of mortgage fees and possibly settlement fees.

Some lenders may also stitch you up for valuation/legal fees.

Generally, if there's no top-up of the loan on refinancing, no additional stamp duty will be payable.