Yeah im not completely sure about that – definately would need to suss out with an accountant. Can you please advise if you can have your repayment deducted from the offset account?
yes you can. Offsets are usually just like normal savings accounts – except for CBA.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
On the deductibility issue see
TR 2000/2 Income tax: deductibility of interest on moneys drawn down under line of credit facilities and redraw facilities
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20002/NAT/ATO/00001Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jacqui-
I can confirm that everything Terryw has explained is absolutely correct, you have just been given a very good lesson in finance. I see comments written all over this website that hold an element of truth in parts and a sales pitch in others. I can honestly say you have just received a very good lesson in finance matters from someone who has it sorted. I usually write take away the information you like and and discard the rest, but as I didn't write any of the comments. I can say you would be short changing yourself if you dismissed Terry's thoughts.
Excellent post Terry!
Terryw wrote:yes you can. Offsets are usually just like normal savings accounts – except for CBA.Terry, I'm banking with CBA. How are their offset accounts different? I thought an offset was a simple mechanism to use the balance in your savings account to offset an existing PI or IO loan? I was interested to see you say that CBA is different.
Andrew
itsandrew
Go as far as you can see and you will see further.
Hi Andrew
I am not entirely sure of the full features – but it appears from what is written above that they don't allow direct debits and have minimum balance requirements etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry – I looked into other banks offset accounts and they are different to what I am used too and all alot more flexible. I will go with your way of structuring now I am aware of how I can use them more effectively. I actually emailed the General Manager at Mortgage Wealth at CBA who look after the new products and they are bringing one out but not until April 2012 as they are also implementing major changes with the home loans and loan packages available. This actually works in perfectly as my fixed HL rate comes off in April 2012. The reason I was never a big fan off the offset option was not being fully aware of what was out there in the market so I am really glad you gave me your opinion.
Appreciate all your help Terry.
<br /
:)” title=”>:)” class=”bbcode_smiley” />Jacqui
The 3 lender Terry has mentioned have some of the only true transactional offset accounts in the market.
Forget MISA as it stands from CBA it is not fully transactional.
Anything else is not as competitive.
Richard Taylor | Australia's leading private lender
Hey Richard what lender do you write most of your business through?
jacqui… ANZ probably
Can someone explain why CBA Offset account is different to ANZ ONE Offset account?
Wealth package vs. Breakfree package??GOM
It is simple the MISA offset account from CBA is not fully transactional and has minimal amounts you can transact from.
There is no nipping up the road for a curry and whiping $35 out of the whole in the wall.
The Anz One account beats the MISA hands down every time.
Richard Taylor | Australia's leading private lender
Thanks Richard, will check it out. CBA are meant to be bringing out a fully transactional 100% offset account but its been put on hold til April 2012. Can you get better deals than if I was go into the ANZ branch?
Yes i most cases depending on the loan amount.
It is not just the rate that is important but the structure of the loan.
Local branch wont have a clue and even if they did wouldnt care less anyway.
CBA have been promising a fully transactional offset account for the last 2 years.
Richard Taylor | Australia's leading private lender
No to getting a better rate- the banks would not do themself out of business. But Yes to setting you up correctly.
At the expense of competing against myself. The branch will provide a smoother experience. I call a spade a spade, Sorry to offend brokers.
On the flipside, you will be talking to a person who is not equipped with the many, many available options for investors and home owners. At a branch, you will often be talking to non-investors who will set you up with a term deposit, all while you have a home loan with an offset facility (I see a lot of this).
Solution: Ask advisers on this site what to do, and than go to the bank……..just saying……
That's why good brokers need to charge a small upfront fee – otherwise they end up doing all the work and then the client goes straight to the bank!
An old client and friend did it to me this week. Countless phone calls, and then he says he just rang up the bank direct and asks if he can send me their email and explain it to him. He sends it across and it already has the loan application number on it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It is the old story of "the path not taken", Your mate will never know the opportunities he has missed by not continuing with you. I would put that one down to your mate's loss.
http://www.birchcorp.com.auHi 8
Well, its not entirely his fault. He rang up the bank he was already with to make some general enquiries and they ask his name etc to just pull up his details. They then issue a number so that if they did later try to go to a broker the bank will say they were approached first.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As long as it works both ways?
Richard, Thanks for the explanation.
But why brokers still refer the clients to Wealth Package (CBA) despite it is NOT a fully offset?Terry, does the branch staff get commision from establishing the loan? I have a friend who is a customer of ANZ PRIVATE BANK. Can they get a better homeloan rate than through the normal broker channel?
:)” title=”>:)” class=”bbcode_smiley” />
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