Forums / Getting Technical / Finance / Off-Set Account not possible

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  • Profile photo of zenzen
    Participant
    @zen007
    Join Date: 2016
    Post Count: 46

    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

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

    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 Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    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 / 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 zenzen
    Participant
    @zen007
    Join Date: 2016
    Post Count: 46

    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

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

    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 Me

    Investment Focused Finance Strategist - servicing Australia-wide

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

    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 Me

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

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