variable loan-twin offsets?

[Dunsborough]

Hi gang

May fall into realms of stupid question...... and one side of my brain says cant work, but all thoughts appreciated.

Instead of accessing a loc with a personal and business sub account secured against a ppor or ip, is there or could there be a cheaper option of a variable loan divided into two offsets instead of the standard one, one offset for personal as happens now but a secondry one for business.

Interested in any variations or reasons why it cant work and or ideas for a new product. Might even brainstorm a new workable product?

cheers

 

[poppy]

I think with most banks it is one loan - one offset. They can't handle anything different. If anyone knows of any banks that can do things differently that would be interesting to hear.

If you had more than one IP loan, maybe you could have one offset account for each loan and use one for personal and one for investment.

 

[Tailcat]

Dunsborough and Poppy,

Just to prove that it can be done, see:

http://www.therock.com.au/faq.shtml​

Taking a snippet from this page:

Q21. Can I have more than one Off-set Account?

You can have up to 6 Mortgage Off-set Accounts linked to one loan account. (Professional Packages are limited to one offset) You and your partner might have a joint loan but wish to keep your savings accounts separate. You can each open your own off-set account with a chequebook and Cashcard and link them both to your joint loan account. You maintain your financial independence but share the interest savings.


Back to Top

Q22. Can I use the Off-set Account for my business?

Yes, as The Rock's Mortgage Off-set Account has a chequebook facility it is suitable for small businesses. However, it is important to note that the Taxation laws require that off-set accounts must be held by the same person(s) as the loan (eg. an off-set account could not be in the name of a company if the loan is in the name of Mr & Mrs Smith).


[End Quote]

Admittedly, "The Rock" is not one of the big banks, but it has a fairly good reputation around here.

Note there are a few caveats hidden in the rest of the website, so please handle with care. For example: while the account gives a full 100% offset, it also carries a $5/month charge.

N.B. I do not have any accounts with the Rock, just happened to see this feature while checking the site out.

 

[wanelad]

$5 a month charge is pretty cheap for an offset account often there is an 8-10 charge or need to be part of a professional package.

 

[pobrien3]

I believe St.George will allow multiple offset accounts against one loan account.

Cheers

Patrick

 

[Dunsborough]

Thanks everyone

Just to make harder, what about any of the No-doc variable loans? i know LOC's not a problem

cheers

Peter

 

[Dis]

I can confirm STG does this. When I bought my PPOR, I was not yet married to my wife, so we didnt want to mix up all our money yet. I had the PPOR in my name, I had an ofset acount in my name, and a second offset account in both names (me being the primary account holder). I think there was one monthly fee for the loan and one monthly fee for each offset account.