Hi PI Team,
I hopped to my bank with a smiley face to enquire if I can transfer my existing first investment property loan (interest only) from Bank-A to my personal Bank-B (P+I loan) and to have my salary be put into the off-set account! The banker said to me with a smirk on his face that I will need a higher income from mine ($50,000 after tax), and a large deposit of money ($100,000 I’m presuming) to be put into the off-set account because the costs/interests etc… wont eat into my salary and savings!
I guess my question is can a person with a salary after tax of $50k and about $10,000 savings have an off-set account?
Reason is the current Bank-A does not have facility to create an off-set account.
Any response appreciated in advance.
zen
It completely depends on your total situation as to what you can afford – this comes down to borrowing capacity which Bank B appears to think you do not have sufficient capacity.
Speak with a broker who will be able to review your situation in depth across multiple lenders to find a solution which suits you. Offset accounts are pretty standard across a multitude of lenders so if one bank says no, there may be an option that a broker can provide.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Wow, what a banker!
Of course you can have an offset account – even with no savings. Whether it is worthwhile or not will depend on the circumstances. Perhaps they meant that you could not service to qualify for the loan. Hit Corey and his team up for some advice and forget dealing with the banks direct.
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
Appreciate Corey and Terry. Yes Terry I think thats the word ‘service’ to qualify for the loan.
Corey will hit you up tomorrow mate.
I’m off to watch aussie ninja warrior on telly :)
cheers
zen
Sounds good Zen. Feel free to give me a call or flick me an email.
Unless you didn’t enjoy the finale for ninja warrior like a lot of people last night!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hey Zen
Definitely sounds like a second opinion is worthwhile – and you can’t go wrong with Corey above.
Cheers
Jamie
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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