Hi Richard

"Most of our customers are paying 5.05% with 100% offset on loans more than $250K."

how much would the interest rate be for a similar loan amount with a standard mortgage that is not off-set? would the overall entry/exit fees be the same?

thanks for the info

1. whats your opinion about  the finanical pros/cons of whether to buy a cheaper house without mortgage or a more expensive one with mortgage?

my current thinking is that I would be fairly happy in a $1.5mill house without mortgage and no financial stress/risk
– but alternatively I could buy something closer to my dream house for $2mill with a mortgage, yet not have too much financial stress due to the significant equity I'll have in the house which I can draw down on if needed (also I have a secure job which is unlikely to be affected by current economic conditions). Also I think that buying a more expensive house in the relatively depressed property market of Sydneys lower north shore at the moment may lead to significantly greater gains when/if the market picks up again over the next 7 years.

By buying the more expensive house, I get the enjoyment of the nicer house and potentially may increase my net worth by a greater proportion

is this a reasonable line of thinking?

2.  if i buy a $2mill house with a $500k mortgage costing me approx $3500 repayments/month, I would have aprox $18k p.a after living expenses. If i need money to buy a car or investment property then I can release some equity from the house

would i be best off with an off-set mortgage account from the outset or would another type of mortgage be best?