I'm currently paying off an "ANZ Money Saver" investment loan and am now looking to purchase a property to live in (for under $200,000 preferably) over the next 6 months. I have about $35,000 saved up in a few savings accounts which I realise would be MUCH better utilised if they were sitting in an offset account. My loan however doesn't have the offset feature but I recently got offered the chance to switch to one of ANZ's newer loans (Simplicity Plus) which has a lower interest rate and no monthly fee (like my current loan). It also allows me to withdraw any excess money I put into it (at a $25 fee). So I was thinking, should I switch to the Simplicity Plus loan and put all my extra funds into the loan…and then withdraw it all a few months down the track when I need it for the new loan? Another option that was mentioned was that I could transfer to a Standard Variable ANZ loan where the interest would be higher…but the offset account would be available. So I'm just wondering which of the following options would save me the most $:
1. Don't change anything and stay with the Money Saver Loan
2. Convert to Simplicity Plus, add all my savings into the loan, then withdraw it when needed for the new loan
3. Convert to the Standard Variable rate (which is higher) but allows for the offset account
4. Any other options?SS
The Anz Money Saver is a discountinued product and has been replaced by the Simplicity loan which certain has a place in the market.
If you looked at the Breakfree package and took the variable rate loan then you would receive a discount dependant on the loan size of upto 0.7% and you could link the offset account to this. Your next PPOR purchase would then be exempt from application / valuation fees and you could switch the offset account accordingly.
If you pay down the current Money Saver IP loan then when you redraw the funds the interest will not be deductible but more importantly the loan will now be contaminated due to the mixed use.
Your loan re-organisation is fairly simple matter and your mortgage broker should be able to handle the changes for you.
Hope this helps.
Richard Taylor | Australia's leading private lender
The Breakfree package is PERFECT for those reasons alone… but don't you need a credit card with ANZ (something I don't want) before you can get the Breakfree Package. And isn't there a large annual fee to have this package as well?
SS
The approved credit card under the package is $5000 however you can change once the loan has settled.
The annual fee is $340 but when you consider the normal application / valuation / bank legal fees are $600 you almost get 2 years worth saving immediately. In addition, when you add the monthly fee you are paying under Money Saver and the upto 0.7% interest rate discount your savings is greater than $340 per annum.
Also the normal Anz one offset account comes with a $10 / month fee which is of course waived.
Richard Taylor | Australia's leading private lender
what ? Your asking other people what is the best ? Do you have a calculator, pen and paper ? Can't you figure it out for yourself ?
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