Multiple offset accounts

Discussion in 'Loans & Mortgage Brokers' started by Hwangers, 26th Jan, 2017.

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  1. Hwangers

    Hwangers Well-Known Member

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    hello - for the gurus on this forum a quick question

    In the case where an investor holds multiple investment properties with individual offset accounts attached to each - what is the best way to make your surplus funds "work" - is it to

    a) spread out the money across the multiple offset accounts evenly
    b) have it all in the offset against the loan with the highest interest rate
    c) have it all in the offset against the largest loan amount

    be curious to understand how you would go about doing it - thanks in advance
     
  2. Marg4000

    Marg4000 Well-Known Member

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    I would choose (b).

    Unless the amount in the offsets exceeds $250K. In that case I would spread any excess into an offset on a loan with another bank (if possible).
    Marg
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    b.

    I have clients where one is on the top bracket and the other is no income so they move the cash into the offset account attached to the loan for the property owned by the lower income earner.

    But don't do this without legal advice as various consequences on death and asset protection. Where they keep finances separate interest free loans may be be needed.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Do you have an owner occ debt?

    If so - park the cash in an offset linked to that.

    Cheers

    Jamie
     
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  5. Redom

    Redom Mortgage Broker Business Plus Member

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    A few considerations:
    • Into owner occ debt first & then
    • b) & then
    • Spread 250k across different institutions if offsets are held with different banks.
     
  6. miximitosis

    miximitosis Well-Known Member

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    Bingo! Exactly what I was going to say.
     
  7. dabbler

    dabbler Well-Known Member

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    Yeah, home or non deductible first.

    Then I would do highest rate if a lot of cash, stay below 250k each lender acc
     

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