Can I offset funds against a fixed rate Westpac loan?

Discussion in 'Loans & Mortgage Brokers' started by wylie, 25th May, 2017.

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  1. wylie

    wylie Moderator Staff Member

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    Dumb question maybe... (I'll call the bank tomorrow, but doing some figures tonight).

    If I fix a Westpac loan, but don't prepay any interest in advance, can I sit funds in an offset against that fixed rate loan?
     
    wylie, 25th May, 2017
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  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    No. Westpac don't offer an offset account against a fixed loan.

    You can easily split the loan into variable/fixed to get a balance between the offset and fixed portions.
     
    Peter_Tersteeg, 25th May, 2017
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  3. wylie

    wylie Moderator Staff Member

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    Thanks for such quick response. Helps me enormously.
     
    wylie, 25th May, 2017
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Oh no it is that time of year again
     
    Terry_w, 25th May, 2017
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  5. wylie

    wylie Moderator Staff Member

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    LOL... yes. No loans needing to be prepaid this year. Which means my bank cannot stuff any of them up. I could probably take a little holiday where normally I have to hang about to fix up the stuff ups.
     
    wylie, 25th May, 2017
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  6. Dean Collins

    Dean Collins Well-Known Member

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    That's what we did with our Westpac loan.

    30% deposit+stampduty+purchase expenses in cash.
    20% variable with 100% offset (have almost paid the entire variable offset in 12 months-just $26k to go)
    50% fixed 5 year at 3.99%

    Pretty much the property is self funding from rent with around $50 per month negative geared (approx. $1200 pa if you include projected average repair expenses of $600pa).
    Basically means I sleep just fine for the next 5 years.
     
    Dean Collins, 26th May, 2017
    #6