EPI_Den wrote:
I'm with Commonwealth Bank and I recently negotiated a further decrease on my loan. I'm now on 6.61% which I think is 1.14% below their standard variable rates. I'm happy with this but it's not out of the question to fix part of it if I see a really good deal! Den

How did you negotiate this? Do you have significant amount of…[Read more]

Shape wrote:
—Note—- How you tell if your account is an offset or redraw, it will say when you go online and go to "more information/ accounts details" the page where it tells you your % and "years" left…if it doesn't say Offset then you most likely don't have one…for a re-draw it won't say anything because Most account have an redraw.…[Read more]

the lending manager said to me offset and redraw accounts are the same thinga redraw account offsets the loan account.I am bit confused, how do I know if my loan is a offset or redraw where is it documented?

So essentially offset and redraw are the same thing but an offset provides more advantagers. So why would anyone go for a redraw as opposed to an offset? I am thinking fees might be the reason?

What is a redraw account then?I just read that blog entry sounds like my account is an offset.

no restrcitions and is a full featured loan, only limit is can only pull out minimum of $500 from offset account. I get no charge on pulling out of offset account either.

What is everyone getting now?I just applied for a $700k variable offset loan account.I think they said I could get 6.79%, shoudl I shop around? ps thats with westpac

can you place a charge over the title? for example, 2nd ranking mortgage or caveat?To me this seems like a big risk of buying a strata title, you are essentially taking on the credit risk of other individuals.In some apartment blocks almost 60 people and there is no real incentive for investors to pay this in a falling market should loan value >…[Read more]

ohk so then you would have to proportion that period out?

Yeh but what if I sold property B 3 years down the track?

Doesnt that mean, I could sell one. Then, move into the other one, then that becomes my PPR and then I can also get benefit on that place once I sell?Or can a person only claim one CGT exemption in their life?So essentially, if someone has a property of 10 , they could essentially move in to the property when they first buy it and then they can…[Read more]

body corporate manager sourced 3 companies, based on building val.Took middle ranged one as it had $20mil pub liability.So if I was to not get public liability for my own property, does that mean if my tenant was to sue me I could lose my house?

It cant be right that it is so easy to transfer property.All you have to do is fill out the T1 form and get the owner to sign and bang its been transferred.Why is it so easy?It just means its so easy for vulnerable trusting family members to sign documents if someone they trust brings them form to sign. Is it this easy to transfer a property,…[Read more]

I am in Victoria

so what if i let out my principle place of residence for say 5 weeks.Can I charge my tenants for water usage eventhough our meter is shared?

?

This states otherwisehttp://www.echoice.com.au/mortgage/home_loans?pn=/info/home_loan_types/offset_account.htmlInterest you make offset by interest you payTherefore, bank could essentialy make a "margin"

Ok so essentially the offset account acts as a reduction to the principle amount. So in effect if that happens there is no difference between a P&I and I loan should you do same monthly principle reductions every month. I don’t get the purpose of the offset account then. Why can’t they just reduce the principle loan amount?  Does the amount the of…[Read more]

Ok just ran the figures through a loan amortisation schedule and also did the calculation for interest only and the overall interest paid and loan balance outstanding at the start and end of each month remain the same, ASSUMING the principle component of the interest only decreases by the amount of the extra payment over the interest only. For a…[Read more]

So that is where I get confused. Why would anyone want an P&I loan when they can simply go for a Interest only. Say overall you still repay $1400 a month does the P&I principle get repaid down faster because of the way the interest is calculated?Interest only Loan interest is calculated like this (for a year) – Interest (say 7%) x Principle ou…[Read more]