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Multiple offset accounts with one Loan

Discussion in 'Property Finance' started by hash_investor, 23rd Sep, 2016.

  1. hash_investor

    hash_investor Well-Known Member

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    I am wondering if there is a way or lender who lets you have multiple accounts all offsetting one loan account? I have found only one allowed account so far.

    The reason I want this is budgeting. I want to keep a separate account for my day to day expenses to limit overspending but I want money in that account to offset my loan amount too.
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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  3. York

    York Finance Broker Business Member

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  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    The lenders I'm aware of are:
    CBA, BankWest, St George group, Suncorp.

    I'm fairly certain Westpac doesn't. NAB and ANZ definitely don't.

    It's ideal for having a primary account for your daily transaction stuff and various sub-accounts for budgeting and savings purposes.
     
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  5. wombat777

    wombat777 Well-Known Member Premium Member

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    I had this facility with suncorp and now have it with bankwest also after refinancing. I actually exceeded the limit on the number of accounts in my Bankwest internet banking. 3 loans, 9 offsets linked to my PPOR loan and 1 credit card and bankwest couldn't compute ( limit is 12 accounts for 1 internet banking access number ).

    I posted some info in here on how I have it structured - Terryw’s Ideal Loan Structure
     
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  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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  7. Propagate

    Propagate Well-Known Member

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    I just use a simple spreadsheet. e.g say you have one offset cash account with $100k in it and your income goes into it too.

    Spreadsheet breaks down into catagories, might be say:-

    Savings - $50k
    Toward new car - $20k
    Annual Bills - $10k
    Holiday - $10k
    Play Money - $10k

    Each time you get paid, you overall pot goes up and simply adjust your spreadsheet to suit. You may want to save $x per month, put $Y per month towards a car and $z per month as a 1/12 of your annual bills so you always have the required amount to pay the bill when it comes due.

    You never have to go moving money around from one offset account to the other then, you simply tally your total cash amount with your spreadsheet and use you spreadsheet as your split accounts in effect.

    I've done it like this for years, to the extent my spreadsheet is now a work of art!
     
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  8. Terry_w

    Terry_w Tax and Structuring Lawyer Business Member

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    Suncorp are good at this. 10 offsets available with no fees under the package.
     
  9. hash_investor

    hash_investor Well-Known Member

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    Thanks.

    stricter lending rules = better facilities
     
  10. TaylorChang

    TaylorChang Well-Known Member

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    Suncorp is big on this sub-account link with offset account for the budgeting.
     
  11. albanga

    albanga Well-Known Member

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    ANZ for all their brilliance are horrible in some of the more general banking stuff.
    Online is the worst I have used, single offset and the most aggravating for me was the card attached to the offset is eftpos only!! This means if you wanted to shop online you needed to use a credit card or transfer into another account that had a MasterCard (how I did it).
    Reason being is some places like betting agencies are treated as cash advances so using CC was a bad idea.
    You could have set up the option on your CC to have the savings but then pay pass doesn't work.
    Yeah I know first world problems, but it never made sense to me why they couldn't do a visa/master on the offset account.

    I also find thier branch banking to be the slowest and have the least amount of idea. But I have only used a few ANZ branches.
     
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  12. Invest_noob

    Invest_noob Active Member

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    Hi @albanga , how did you manage to keep a track of your finances with the one offset account? I'm having the same issue with ANZ :(
    Maintaining a spreadsheet for every little expense will be a pain.
     
  13. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    If it's really a pain you can gain another offset account with ANZ - however they will charge an additional account fee of ~$10 a month. Otherwise there are other lenders which will allow you to have multiple offset accounts with ease - all comes down to have important it is versus other considerations.
     
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  14. albanga

    albanga Well-Known Member

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    I left them for CBA :p
    But in all honesty it's only recently I have started to utilize multiple accounts so that part was never a real issue for me.

    If you like to utilize multiple accounts then I would ask the purpose and how much money sits in some of the accounts?
    For example I now use two accounts with one for expenses and one for splurging (Cany say I agree with much of what Scott Pape says but his account setup I do like). Money comes into and goes out of these accounts every week.
    The point being having them as offsets would have almost no benefit.

    So if you do the same and you want to have multiple accounts just get normal no fee ANZ accounts and just use your offset for your larger savings.

    If however you have large sums of money to put in each offset then either pay for them or switch banks. A number of lenders so multi offsets.
     
  15. Invest_noob

    Invest_noob Active Member

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    Thanks @albanga , unfortunately I have to go through them for now, may change in a year. More reason to not fix my loan.

    Yes, I didn't think the barefoot buckets were the best but it was a good idea anyway, so I was going to have an offset each for:
    1)Everyday expense
    2)Every other expense doesn't need to be paid/used within a month including holidays, engagement ring money etc ;)
    3)One to build up safety buffer on my loan for if **** goes south or if it every goes P&I
    4)One for amounts to be saved for investing in shares/next IP.
    5)A 'MOJO' account that has $2,000 in it that will be topped up by 2% of every pay.

    I'm considering paying the $120 a year for a second offset. I wonder if it is worth it.
     
  16. dabbler

    dabbler Well-Known Member

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    Be aware, Suncorp does sub accounts, not seperate offsets
     
  17. albanga

    albanga Well-Known Member

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    @Invest_noob it is a fairly easy calculation to work out if the interest saved will offset the annual fee. If your rate is 4% then you would need to have atleast $36,000 in the offset to cover the annual $120 fee.
     
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  18. Terry_w

    Terry_w Tax and Structuring Lawyer Business Member

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    What is the issue to beware of?
     
  19. dabbler

    dabbler Well-Known Member

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    They are s
    They are sub accounts, so you can only offset one loan. So if you have different products or loans for example, you only offset the one with up to 10 sub. Double check what is being offset & keep your eye on it over time.

    Others do have free offset with each loan or split, they are not sub, but off each one, one may suit better than the other, depends what your doing.
     
  20. Terry_w

    Terry_w Tax and Structuring Lawyer Business Member

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    I don't understand this.