Thanks Benny

Thanks guys

It didn’t even cross my mind until the floods. That could have been a very expensive lesson.

Cheers

S

Haha, all good Benny, I am enjoying learning more about it all.

So another option could have been to just leave the funds in the loan account? Would this be more like a line of credit?

Cheers

S

Hi Benny

I believe I am across the potential offset issues.

Just to draw a clear picture (I possibly should have done this at the start)

This is a refinance PPOR with a new lender, so no other money whatsoever, savings or wages go near it at this point in time.

There are two offset accounts & a loan split 3 ways.

One offset account sits…[Read more]

Hi Benny

I believe I am across the potential offset issues.

Just to draw a clear picture (I possibly should have done this at the start)

This is a refinance PPOR with a new lender, so no other money whatsoever, savings or wages go near it at this point in time.

There are two offset accounts & a loan split 3 ways.

One offset account sits…[Read more]

Hi Benny

I believe I am across the potential offset issues.

Just to draw a clear picture (I possibly should have done this at the start)

This is a refinance PPOR with a new lender, no other money whatsoever, savings or wages go near it at this point in time.

There are two offset accounts & a loan split 3 ways.

One offset account sits empty…[Read more]

Thanks Cory.

I phoned the bank and explained what I wanted and how I wanted it done. They were able to do it with out closing the account & there is a clear trail of movement on all accounts.

He did seem a bit miffed that I wasn’t happy with him moving the redraw from the PPOR to the IO offset.

They continue to claim it must have been where…[Read more]

Ok, so this is what I have done, I moved the 53k back into the IO loan (effectively paying it back) & then drew the 53k directly into its own offset account where it will sit until settlement of the IP next month.

Problem solved?

Thanks Terry

S

Thanks Terry, I will get on to my broker this morning.

Now I’m not sure I understand?

have the finds redirected back to the -53k or just move it to the offset & reverse any reduced interest resulting form the funds sitting in the PPOR account.

The second option is what the bank is suggesting.

Thanks for your responses, I really appreciate it.

S

Hi Terry

No the 53k is not a split on the 220k. The -220k & -200K are my PPOR loan Split fixed & variable. The 53k is a equity cash out on a revaluation of the PPOR. My total borrowing against my PPOR is now 473k divided into three separate loans.

the 53k is its own loan, taken out IO & at a higher interest rate as it has been classified as…[Read more]

Hi Terry

Thanks for the reply.

Refinanced PPOR 420k into two loans + a separate equity release.

So accounts should look like this

1, -$220,000 V
2, -$200,000 F
3, -$53,600 IO
4. $00,00 (offset acc 1)
5, $53,600 (offset acc 3)

Instead they look like this

1,-$166,400 V
2,-$200,000 F
3,-$53,600 IO
4, $00,00 (offset acc 1)
5, $00.00 (offset acc…[Read more]

Hi Benny

Not one but two offset accounts were opened. One against the PPOR loan & one against the IO cash out for investment purposes loan. The cash landed in the actual PPOR loan account, bypassing both offset accounts to sit in & reduce the balance of the home loan.

So I have effectively taken out a IO equity loan at a higher rate to pay…[Read more]

Hi Benny

Not one but two offset accounts were opened. One against the PPOR loan & one against the IO cash out for investment purposes loan. The cash landed in the actual PPOR loan account, bypassing both offset accounts to sit in & reduce the balance of the home loan.

So I have effectively taken out a IO equity loan at a higher rate to pay…[Read more]