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  • Profile photo of Tristan1Tristan1
    Participant
    @tristan1
    Join Date: 2015
    Post Count: 4

    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

    Profile photo of NoobugawaNoobugawa
    Participant
    @noobugawa
    Join Date: 2015
    Post Count: 16

    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.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    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 / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of PLCPLC
    Participant
    @plc
    Join Date: 2012
    Post Count: 400

    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

    PLC | Phoenix Loan Consulting
    Email Me | Phone Me

    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    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 Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    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 Me

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

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