Hi All,
I am divided on what I should do, I hope there are people here that can help me out.
Ive gone through a broker to source funding for an IP that settles in 2 weeks, and he's offered the following as the best products.
One that is funded through NAB, its a professional packages which comes to 6.46% with a $395 annual fee. This pro pak comes with 100% offset account, redraw and other features. The idea is if I take another loan, I dont pay any additional fees and I get a further 0.10% discount in the variable rate. 5 year interest only term, 30 years.
The other is the same product but the standard for 6.61% but no other fees.
My calculation shows the following:
18,204 @ 6.61% STANDARD LOAN
17,790.84 @ 6.46% + 3.95 = 18,185.84 PRO-PAK
Difference : $19 per year! WOW!
Now, my fear is that the interest rate difference is variable, whilst the annual fee is fixed which means I stand to lose in the mid to long run should they increase the rate higher compared to other banks at any time.
Obviously the added features is nice but not sure I want offset due to it reducing the amount I can claim at tax...dont see myself using any of its other "professional" features.
What do you guys think? What would you go for?
I am divided on what I should do, I hope there are people here that can help me out.
Ive gone through a broker to source funding for an IP that settles in 2 weeks, and he's offered the following as the best products.
One that is funded through NAB, its a professional packages which comes to 6.46% with a $395 annual fee. This pro pak comes with 100% offset account, redraw and other features. The idea is if I take another loan, I dont pay any additional fees and I get a further 0.10% discount in the variable rate. 5 year interest only term, 30 years.
The other is the same product but the standard for 6.61% but no other fees.
My calculation shows the following:
18,204 @ 6.61% STANDARD LOAN
17,790.84 @ 6.46% + 3.95 = 18,185.84 PRO-PAK
Difference : $19 per year! WOW!
Now, my fear is that the interest rate difference is variable, whilst the annual fee is fixed which means I stand to lose in the mid to long run should they increase the rate higher compared to other banks at any time.
Obviously the added features is nice but not sure I want offset due to it reducing the amount I can claim at tax...dont see myself using any of its other "professional" features.
What do you guys think? What would you go for?