Thanks Richard & Terry, that’s great advice.
So, this may be a really silly question, but what would really be the difference between the setup you suggested Terry, and the way they are planning to set it up? As it is still a split loan, with the offset facility being on the main residence property, and IO on the investment/LOC portion? And the…[Read more]

Yes, I suppose that is exactly what they’re proposing, as we haven’t bought or even found an investment property yet.

Terryw wrote:
So are they proposing you buy the investment property solely with the LOC and that it wouldn't be used as security?

The way State Custodians are going to set it up is a two way split, 1 for the current mortgage with 100% offset account, and 1 Line of Credit for the investment property. If we were to setup a new loan when the investment property comes along, we would incur all the application fees etc. again, which is why they recommended setting this up…[Read more]

Thanks Terryw,
We run an online nursery business from home.
We have about $125000 left on the current loan, with property being worth around $400000.
At the moment we have everything going into a goal saver account at 5% interest, and make some extra repayments into the loan aswell, every week. We could put everything into the loan, but there is a…[Read more]

And is it worth switching to State Custodians, or better to stay put with CBA?

I forgot to ask;Would it be worth switching from the 6.29% economiser loan to the 6.8% standard variable loan just to get the offset facility? 

Thanks so much Terry,There's a lot of info there we need to look at. We were recommended by our account to keep the business as sole trader in my husbands name, possibly pay me a wage if that suits tax. How could we not have it in our own name?We wanted to have the business income go into the offset as this will be our main income over summer and…[Read more]

Thanks Jamie!I'm going to get my husband to have a look at this info to see what he thinks – looks like we need to do some reshuffling! As the current mortgage left is very small we don't qualify for CBA's wealth package, but if we were to go for an IP we definately would. Cheers, Elle

Jamie M wrote:
Hi Elle Without knowing too much of your…[Read more]

Thanks Tom,We don't qualify for their wealth package unfortunately as we have only $125000 left on the current mortgage. Their wealth package starts at $150000, and they told me it wouldn't be worth it anyway for loans under $150000. If we were to get additional funds through them for an IP than it's definately something to look at. The tax…[Read more]