Loan Tip: Why would someone want 2 offset accounts on the one loan?

Property A (Previous PP, holiday let and now IP) Loan balance 320,000 valued at 720-750,000.
Property B (Previous IP and now PP) Loan balance 450,000 valued at 570,000 - 620,000.

 

Does having multiple offsets on the 1 ppor loan cost more?

 

depends on the bank. No cost with many - or I should say no extra cost.

 

No extra cost to have multiple offsets against the one loan with CBA or AMP

 

Actually they do exist - a mixed loan. One loan account with multiple uses

 

Would anyone know if Westpac offer multiple offset accounts linked to the same loan? thanks

 

(Until you get a definitive answer):
I do with St George and Bank SA (Westpac owed) so ... probably?

 

No Westpac dont

 

I had a couple client the other day that use 3 offsets. His, hers and combined money in each

 

Are they jointly owned or does the bank allow separately owned offset accounts?

 

Hi @Terry_w, can you explain why the offset accounts might need to be in Spouse A's name only?

 

Joint owned. Some lenders allow offsets in one name of the borrowers, most don't though.

 

Non borrowers couldn't have their name on the offset account. So if Spouse A owns and the loan is in their name Spouse B coudn't be on the offset - which has estate planning and other consequences.

 

I'm curious about this one, as i've seen this statement in many other threads in various form. Why does it matter which loans the offsets are linked to, provided that the money in them didn't come from the loan itself been drawn? It's not borrowed funds, so why would it matter?

Obviously if you offset a deductible loan, you are reducing the amount of interest that can be deducted, but is there anything else there?

 

I can't see how it could matter unless the funds in the offset are borrowed.