Current homeloan offset rates

Offset would be to get the loan paid off quicker and have the money in it available if needed easily.
Approx 50k in it to start with and approx 50k added each year.
With loan repayments around 5k per month I think loan would be paid off in 6 to 7 years because of offset.

 

No no it would be all good.
When I do a quick search I can't even find a big 4 under 3.5% and thats without offset.

 

Split your new loan
$100K variable @ ~2.8% (with offset)
The remainder a 2 year fixed @ ~2.2% without offset

At the end of the 2 years, if you've maxed out your offset with surplus savings, you can readjust or go all variable.

 

Big 4 advertise high rates and then discount it. This comes back to Peter T's comment about using a broker. Its not a scam its how the market works. If Banks all advertised their lowest possible rates every one would expect it. Its like airlines... The price is never quite what is advertised. Best rate is for prime borrowers and certain loans and LVRs, suburb post codes, occupations etc and very different if you want LMI, offsets and a full service loan product and is anfofer after assessment. Many will add a $395 annual fee in the mix too. So the rate seems low but is a higher comparison rate - eg Terrys comment.

Its like buying a suit off the rack. Sometimes it doesnt quite fit right, or needs to be adjusted or legs shorter etc. And sometimes you wonder if they just mislabelled the size.

 

mmm something I know nothing about but porobably should have a look into it.
Thanks

 

Sound like a very good idea.
I will need to crunch the numbers on this and see just how big a difference in the end will be.

 

4 good brokers have responded, give one of them a call and let them help you see the big picture.

 

If you understand how banks price their loans, you'd find that all the Big 4 have owner occupier offset loan products around 2.7%-2.9%.

Then you'd be upset that a friend told you that they've got 2.29%, but the friend would neglect to tell you that that's a fixed rate, not variable with an offset account.

 

I appreciate your advice. I think a big 4 @ 2.7% would be a good thing.
I'm currently still! looking for the "perfect" house for me, but I would prefer to find a good size block of land that I could build a house and shed on.
Both seem to be impossible to find.