Hi Guys,
I have two Homeloans with one bank, and everyday account also as an offset, aswell a credit card.
Im entitled to have two Offset accounts.
What’s the best way to set up my accounts?
I purchase most things with credit card. I was thinking to have Homeloan1 and Offset1, Homeloan2 and Offset2 then have everyday account split every fortnight into offsets. Thoughts? Both loans are same interest rate so is it worth just having an Offset for the larger homeloan?
Thanks For the help
Hum. I think banks tend to offer better variable rates for a single loan of a larger amount, say $1m loan can get var rates of 4.3% for example.
No need to have more than 1 offset unless you have a shit load of cash.
Offset the non deductible loan first. If none are deductible then offset the highest interest loan. If you have different ownership of IPs then offset the loan in the lower income earners name.
Never join loans with different purposes.
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
Hum. I think banks tend to offer better variable rates for a single loan of a larger amount, say $1m loan can get var rates of 4.3% for example.
Not really the case. Total aggregated lending will likewise get you better rates, even if it’s multiple splits.
As for the OP, take heed of Terry’s advice. It’s spot on.
Cheers
Tom
Agreed. Any decent lender worth its salt is pricing just as competitively for a single loan/vs multiple – it’s all about the $$$ volume.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Agreed – but pretty sure WBC price based on splits. Seems the more splits the lower the pricing discount.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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