CBA MISA account

Discussion in 'Loans & Mortgage Brokers' started by Hodge, 1st Feb, 2019.

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  1. Hodge

    Hodge Well-Known Member

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    Just received a letter from CBA advising that they will no longer have the MISA (offset account) available from the 16th of March. Does anyone know if this is for new customers only?


    "on and from 16th March 2019, MISA is no longer available for sale, or able to be activated, for any loan. If a MISA has a nil balance on or after the 16th March 2019, it cannot be reactivated"

    My understanding is that existing customers can continue to use the MISA account. Can anyone confirm?
     
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  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    They replaced the MISA account with a proper offset account years (and years and years) ago. I'm surprised it took them this long. The MISA account has always been barely functional.

    Ask them to link an existing streamline account or to set up a new one and link it as your offset.
     
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  3. qak

    qak Well-Known Member

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    Looks like it. We have a MISA as well, I think CBA have a different offset now which you can add to home loans (maybe multiple offsets?). I'm not sure what the difference is so have been reluctant to change it over.

    edit - cross posted with Peter above.
     
  4. Hodge

    Hodge Well-Known Member

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    Thank you Peter and Qak. so they still have an offset account but different name. Their isn't much wrong with the current MISA account, not sure why they would change it.
     
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  5. qak

    qak Well-Known Member

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    Apart from the limited transactional capability of the MISA (which doesn't bother us as it's a full offset situation) what is the difference between the MISA and the newer offset accounts?

    I just need to check if there's ANY reason I should stick with the MISA?
     
  6. JasonC

    JasonC Well-Known Member

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    If memory serves, the MISA has(/had) the same account number as the loan with a different BSB. The Everyday Offset accounts have completely different account numbers (and you can have multiple offsetting against the same loan). Not significant.

    When I set mine up there was a fee to set up a Everyday Offset Arrangement (which would allow multiple offset accounts against 1 loan) - I did a quick search and couldn't find any details of what the current fees are.

    Regards,

    Jason
     
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  7. Hodge

    Hodge Well-Known Member

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    Hi JasonC,

    I believe that is correct. Looks like i'll need to make a call to CBA and setup new offset account. I'm happy with the current MISA, they should at least give existing customers an option to keep using it.
     
  8. craigc

    craigc Well-Known Member

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    Thanks Peter, was concerned when I received the same information last night about removing MISA offset. Glad to know PC has the answers already to my concerns (as I trusted).
    Normal account so not affected.
    Cheers
     
  9. r_m_g

    r_m_g Member

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    Hi all, glad I found this thread.

    I currently have a CBA business loan (in the name of a company / trust account) with MISA offset but I am refinancing. I want an offset on my new loan. My broker has advised that CBA DOES NOT have offset options for company/trust loans (only for individual / personal loans)! This surprises me. Does anyone know if this is actually the case? Cheers
     
  10. r_m_g

    r_m_g Member

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  11. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    I vividly recall the CBA acquired Colonial Mutual and when they did they bought over their offsets only to zero them out without warning. And then gave those customers a redraw account with the balance. Took a few clients affected 18mths for the bank to understand their harm and reinstate the offsets as MISA....
     
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  12. r_m_g

    r_m_g Member

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    Thanks Paul, there would be some significant tax planning consequences of that action!!! I am currently expressing my dissatisfaction to CBA by telephone and explaining to them that they are about to lose my business.
     
  13. r_m_g

    r_m_g Member

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    CBA just confirmed to me by telephone that they do not have any business offset products currently, only for loans in personal names.
     
  14. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    True
     
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  15. Phantom

    Phantom Well-Known Member Premium Member

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    Why does it surprise you? Do you know many other lenders who offer a full offset to a trust or company?
     
  16. Redom

    Redom Finance Strategist Business Plus Member

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  17. r_m_g

    r_m_g Member

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    I understand that Westpac, ANZ and Macquarie still do...
     
  18. Phantom

    Phantom Well-Known Member Premium Member

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    The vast majority of lenders do not allow full offsets for company/trust applicants. Yes, there are some exceptions though.
     
  19. r_m_g

    r_m_g Member

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    I guess the important thing is for members like @Hodge to realise they may lose the offset account entirely if they let the MISA get to a zero balance or close it, and the relevant loan is in a company name. If I didn’t need to refinance at this time, I would maintain my current MISA.
     
  20. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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