Hi Guys. Just bought our second property and have been scouring the banks for a good deal on an offset loan. Seems the only way is to sign up for the wealth package at app. $400 p.a. Dont want or need the "discounts" offered on other financial products. Any other options for an offset loan with little or no upfront and ongoing fees? At 80%, the loan will be just under $500k.
Offset loan with no fees
- Thread starter Richa
- Start date
Have you spoken with your Broker? They usually do the "scouring" for you.
NAB/Homeside give you a 100% offset with a monthly fee of $10 and a very competitve variable rate (around 6.32% at the moment).
NAB/Homeside give you a 100% offset with a monthly fee of $10 and a very competitve variable rate (around 6.32% at the moment).
There are marginally better deals than the CBA for professional packages. As discussed in other posts, there are also better offset accounts.
There are also several lenders who do offer what you're asking - offset accounts, no application or ongoing fees. You might find that you pay for it in other ways however.
My advice is to consult a broker who should be able to properly compare the true cost of different lenders, including any upfront or ongoing fees.
There are also several lenders who do offer what you're asking - offset accounts, no application or ongoing fees. You might find that you pay for it in other ways however.
My advice is to consult a broker who should be able to properly compare the true cost of different lenders, including any upfront or ongoing fees.
You're thinking of the St George advantage package? Not a bad product but you have to look at more than just the fee. St George has some decent discounts right now which outweigh the higher package fee if your loan is sufficiently big enough.
Why do u need an offset loan ?
I can tell from you question that you have not sat down and had a look at a structured lending approach, OR, this will be the last property you will ever buy.
Core underlying financial cost is perhaps what is more important than getting stuck on the "no fees" wagon, but in reality, while direct financial cost is easily quantified, the costs you havent yet identified you wont know..........until you have paid them.
The cost of a loan and structure can often be 10s to 100s of thousands different to what you may think in lost opportunity cost etc.
ta
rolf
Ive chatted with St George, CBA, NAB and Citibank. Ive also looked into loans.com "Dream loan" product and some other smaller lenders. All the banks seem willing to do deals but only if you sign up for the package. As for the smaller lenders...they seem to change their loans every few months and if you stuck with their "old" product, the rate is never as good as the rate they advertise for their new product. We will have the ability to pay off the loan once we sell our current place so i intend to just have the entire balance offset. Thats why im looking for a no fee product.
xcellent
just dont tell the lender that.
Having to make a capital provision for a loan they wont make dollar on wont impress them.
With the non banks, check the LEGAL conditions of when they will allow you to "redraw" ur own funds.
ta
rolf
Ive been shopping it around as an investment loan...trouble is as soon as they hear that they want to refinance my PPOR otherwise they cant lend me the amount i want as the ppor loan is counted against me (its balance is fully offset). Not sticking with my current lender as it is a white label for an Adelaide Bank product and its a pain in the a$$ to deal with them rather than directly with Adelaide.
The banks appear to be trying to structure your lending with cross-collateralisation, which is in their favour, not yours. Given you don't appear to be rate sensitive it is definiely possible to get access to low fee products with good offset accounts. Please get in touch with a broker.
Yeah that advice is just plain wrong. Avoid crossing your PPOR like the plague please.
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