Offset accounts attached to fixed-rate loans

[C-mac]

I didn't think this was possible but a user on another thread mentioned this as a strategy. Were they just dreaming or are there lenders who offer fixed rate, fixed term loans that can also have an offset account ?

 

[Kinnon Bell]

Correct. There are a couple of lenders out there that offer either partial or 100% offset on their fixed loans.

 

[Redom]

I didn't think this was possible but a user on another thread mentioned this as a strategy. Were they just dreaming or are there lenders who offer fixed rate, fixed term loans that can also have an offset account ?

Adelaide, TMB to name a couple. I don't mind either product, particularly for first home owners who are after managing interest rate risk and need an offset facility.

 

[Rolf Latham]

I didn't think this was possible but a user on another thread mentioned this as a strategy. Were they just dreaming or are there lenders who offer fixed rate, fixed term loans that can also have an offset account ?

cba have one

oh

you meant 100 % offset : )

I think wide bay and CUA are a couple of others

ta

rolf

 

[Jamie M]

I didn't think this was possible but a user on another thread mentioned this as a strategy. Were they just dreaming or are there lenders who offer fixed rate, fixed term loans that can also have an offset account ?

There's a few - but you generally pay a premium in terms of a higher rate.

Another option is to simply leave a chunk variable - and link up your offset to that.

Cheers

Jamie

 

[ObuRamaraj]

Heritage Bank allow 100% offset but only directly into the loan as a redraw not as an offset account.

 

[Terry_w]

Heritage Bank allow 100% offset but only directly into the loan as a redraw not as an offset account.

In that case it is not an offset!

 

[Corey Batt]

Unless the client is parking majority funds into the fixed rate, I'd rather structure them with a fixed/variable split with a more practical lender who fits their greater needs.

 

[albanga]

Heritage Bank allow 100% offset but only directly into the loan as a redraw not as an offset account.

I am guessing this is a joke?

 

[D.T.]

Heritage Bank allow 100% offset but only directly into the loan as a redraw not as an offset account.

Then it's not an offset mate. I suggest seeing your broker to clarify the difference. If you don't have one I'm sure we can recommend one.

 

[westminster]

Heritage Bank allow 100% offset but only directly into the loan as a redraw not as an offset account.

https://www.heritage.com.au/Home-Loans/Fixed-Rate.aspx

Partial offset

 

[Qlds007]

Anz Bank also.

Cheers

 

[Juliana Ardila]

Anz Bank also.

Cheers

ANZ will do 100% offset on a one year fixed rate only:

http://www.anz.com/personal/home-loans/our-home-loans/fixed-rate/


I would also prefer to set up my clients with a Fixed+Variable with offset mix according to their particular situation.

 

[Colin Rice]

St George have a 70% offset for fixed and Bankwest have a 40% offset for fixed.

Variable/Fixed split loan is the way to go as others have already mentioned.

In regards to redraw v offset Im convinced most bank staff think its the same thing!

 

[Jamie M]

In regards to redraw v offset Im convinced most bank staff think its the same thing!

Most do - which is scary.

Had a big 4 banker asking why my own loans were split up - I explained for deductible/non deductible purposes. He suggested I merge them in an attempt to get a better rate :-(

Cheers

Jamie

 

[Colin Rice]

He suggested I merge them in an attempt to get a better rate :-(

Rate fixation is the bane of my existence

 

[ObuRamaraj]

If the concept is to be able to contribute unlimited surplus into your fixed rate loan and be able to withdraw when it is fixed, Heritage will do it.

 

[Jake D]

If the concept is to be able to contribute unlimited surplus into your fixed rate loan and be able to withdraw when it is fixed, Heritage will do it.

Nope.


..........

 

[Terry_w]

If the concept is to be able to contribute unlimited surplus into your fixed rate loan and be able to withdraw when it is fixed, Heritage will do it.

That would be a redraw....with potentially disasterous tax consequences.

 

[Qlds007]

That's right Julian i was aware of that thanks.....