Best Loan Offset Account - Sydney

Hi there,

What are generally some of the lenders providing offset accounts for a P& I loan (only 250k), owner occupied? Talking the best rates and lowest overall fees (no fees better) and flexibility to top up extra payments without penalty and redraw money too.

My bank is ING and I am trying to find what is significantly better than their Orange Advantage loan. Also if loan is with another provider, how are payments deducted from your other bank where your income goes? And to top up extra payments, offsets etc, do you just transfer online as usual?

First property purchase to live in, goal is to pay it off asap, then get into 'real' investing /ie different strategy. Have a sizeable deposit and am buying in Sydney West.

Sorry just a noob. Many thanks.

 

Hey Ron,

ING is pretty good - from an overall customer service proposition, rates, fees, ongoing pricing over time, etc. There are a few smaller lenders that might be able to offer you a better rate, not sure what your definition of significantly is though!

You can setup the repayments to come from another financial institute - but it'd make sense to redirect your pay into the new lender / offset account to maximize the interest benefit and knock it down as quick as possible as per your objective.

 

If you're paying their advertised currently rates, there isn't much out there with cheaper rates than ING that meets your stated criteria (proper & fully transaction offset, low fees).

The only problem I have with ING is their loans tend to suffer from 'rate creep'. All lenders have this problem, but in my experience ING aren't great at repricing existing loans to their advertised current rates.

 

Has anybody used "pacific mortgage group" , their rates seems to be pretty good, even for IP. I think they have tie up with multiple lenders. Giving 3.29 for IP, atm, with an offset account.

 

I have. Avoid like the plague. Read the reviews - they are not telling stories. The main guy 'John' literally yells at you over the phone, berates you, belittles you. I was astonished. He has some serious issues.
Also puts you with smaller lenders that loan creep a month in.

 

haha never seen so many bad complaints about the one person.

 

For rate? You won't find significantly better at the moment. Assuming you're applying for a new loan.

You might find a cheap/online lender that spruiks redraw as an offset that provides something a little cheaper.

Cheers

Jamie

 

I read these reviews about him, thanks for confirming