Forums / Property Investing / Help Needed! / Anyone have a Commonwealth Home Loan

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  • Profile photo of propertymistropropertymistro
    Member
    @propertymistro
    Join Date: 2010
    Post Count: 64

    Hi all,

    I recently got a Commonwealth home loan (standard variable).  I have also opened an offset account to put extra money into  to reduce the interest etc. However I find it annoying that they don't seem to allow salary pays etc to go straight into the offset account and I also cant pay straight from the offset account into the loan.  The money has to go into another account.  Has anyone worked out the best way to earn good interest on their money while it is in transition from another account into the offset account and into the loan.  I also have a Commonwealth credit which I plan to pay off monthly before interest kicks in, so I want to tie paying this off into whatever system I work out with this new loan.  Be nice to be able to set something up that efficiently earns me the best interest.  Okay…i'm guessing someone out there has come up with a good system…that they have had success with.  Cheers for your replies….

    Profile photo of Dan WaringDan Waring
    Member
    @dan-waring
    Join Date: 2008
    Post Count: 6

    Hi propertymistro,

    If you have Netbank, you can see the BSB and Acc Numbers. With these, you can have your Salary paid straight into the H/L so it will be 'reducing' interest straight away (its not something the Banks will advertise). If you don't have Netbank, give Phone banking a call to get the BSB for the Homeloan.

    Regards,
    Dan

    p.s I've had a few Commbank loans and it works with all the standard variables… just note that you will have to pay a Redraw fee if you don't have the Wealth package as you will want to redraw however much to pay of the C/card.

    Profile photo of propertymistropropertymistro
    Member
    @propertymistro
    Join Date: 2010
    Post Count: 64

    Hi Dan,
    Great post.  I looked on netbank before and saw an account number but no BSB but I will re-check on this one.  I have the wealth package also.
    Thanks.

    Profile photo of propertymistropropertymistro
    Member
    @propertymistro
    Join Date: 2010
    Post Count: 64

    Thanks Dan,
    I just checked and yes there is a BSB.  Your post was extremely helpful. Have a great week!

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Hi Dan,
    I'm in a similar position to propertymistro. I'm with the CBA and have a wealth package with them. I have two investment properties that are io variable and a redraw facility. I want to change this with them so that I have an offfset account against one of the properties. Does this mean that I can't use their offset account as other banks (ie have my salary/rents, etc credited into the offset)? Many thanks in advance!
    Regards,
    Gatsby!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    The CBA Misa account is not fully transactional so in essense not user friendly.
    In my opinion you can do better.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of BankerBanker
    Participant
    @banker
    Join Date: 2010
    Post Count: 371

    The MISA account number is the same as the home loan however different BSB.
    If you have both the BSB and the account number I am pretty sure you can deposit via transfer from another bank – try it with $10.

    If that works simply give the BSB and Account no for the MISA to your employer for salary payments etc.

    you can also salary credit to all CBA loans directly however there might be tax issues when you redraw for alternative uses.

    I still support (as I’ve said in another post) not using your offset as your main trading account. If your goal is to not pay down your loan and put funds in offset instead – it can be harder to budget when you have your salary go in to an offset with 100k available. If you use an everyday bank account you can separate your day to day cash from long term savings.

    The cost of keeping average of say $1000 out of offset is minimal. You can also use a cc to pay your bills and get online once per month to transfer funds out of the MISA and pay your bill.

    There are still a lot of areas CBA is more flexible than other majors (mostly credit policies / waiver of policies) Depends how badly you want a fully transactional offset. Westpacs is great however you will lose more on rates that you will gain from the account.

    Banker

    Profile photo of jacqui_03jacqui_03
    Member
    @jacqui_03
    Join Date: 2010
    Post Count: 142

    I agree with Banker. You don’t need every investment loan with fully transactional offset account. I think it’s important to have a fully transactional offset account on your non deductible debt but the MISA still works fine if you just want to park money in there to save interest. There are no monthly fees attached and minimum deposit and withdrawal is $500. I have both products and I like features of both.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,065

    I find the MISA a tad frustrating (I have one set up). Like Jacqui said, if your simply parking surplus cash it works fine but if you want to transact frequently, particularly small amounts, it can be a pain. Here's some info on it http://www.commbank.com.au/personal/home-loans/fact-sheets/Mortgage_Interest_Saver_Account.pdf

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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