Current rates on full offset PI home loans

Hi there,

Anyone have any knowledge on the current offset accounts getting around at the moment?

A quick google search suggest there are a few offering what seem ok rates?
There are a few uner 3%

Any have any reasons to not use these if we could put up 25-50k a year into one?

Cheers,

 

Some lenders have very low rates but I would never use them or recommend them due to their overall service offering, policy and serviceability calcs, so really would need to know what lenders you're referring to when you ask the above

Need a bit more info in order to compare;
Investment or PPOR?
LVR?
Loan amount?
Why P&I instead of IO?

 

2 with the very low advertised rates at the moment are:
ME Bank
State custodians.
The scenario would be looking for a 500k home loan putting down 100k deposit and 150k into offset with intention of adding approx 4k per month into offset.

 

Agree with this... but otherwise would make lots of sense to have an offset account.

 

I'm assuming the following;
You meant $500K purchase price with $100K deposit therefore 80% LVR lend required,
It's for owner occupied not investment.
It's variable rates that you're looking at not fixed, due to wanting to offset the loan.
State Custodians is not an ADI so the offset isn't a true offset account, more like a redraw account - not ideal.
ME Bank is OK, rates aren't particularly special for this product mix - there are better products out there.

 

Yes you are correct in what I was saying.
With State Custodians there website says 100% offset if this is not the case could you explain the differences for me?
Also can you suggest some of these better products that I could have a look at please.
Cheers,

 

I have the same question.

 

What happens if you have an IO loan that's 100% offset. Do the repayments become nil till the interest only period expires?

 

Yes

 

Thanks Rolf,
What is a discrete dual account and with a PBR?
It does make me feel a little differently as State Custodians as you say has no insurance. Do we know of any lenders like these guys that have actually gone bust before and customers losing all there money? I guess I was thinking because some of them are owned or backed by larger financial institutions that this could not be possible.
In saying this State Custodians has been lending money for over 30 years. That is a lot of money in insurance.

 

RHG/RAMS - clients got stuck with high interest rate loans afterwards, not sure what happened to the money in redraw.

State Custodians ABN has not been registered for 30 years, earliest date I could see was 2006, however they are owned by Resimac, which has been lending since 1985.

 

Thanks for the feedback.
Wonder what happened with Rams they must of started back up again and under same name.

 

They're owned by Westpac now