Offset account or fixed interest

Discussion in 'Investment Strategy' started by showtime94, 9th Jul, 2018.

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  1. showtime94

    showtime94 Well-Known Member

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    Hi , just wondering i cant have a offset account with a fixed interest rate can i ?
    Also with an offset account whats a good rate thats given out ?
    Thanks
     
    showtime94, 9th Jul, 2018
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  2. Terry_w

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

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    You can with at least one bank.
    3.68% with offset would be a good rate - with another bank, but it will all depend.

    You could also split a loan so have a portion fixed and a portion variable with the offset on that.
     
    Terry_w, 9th Jul, 2018
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Importantly

    Why ?

    ta
    rolf
     
    Rolf Latham, 9th Jul, 2018
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  4. showtime94

    showtime94 Well-Known Member

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    Sorry i should of mentioned its for an investment property
    So 3.68% for ip or for a ppor ?
    And i can have the rate fixed while its a offset loan ?
     
    showtime94, 9th Jul, 2018
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  5. Terry_w

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

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    yes and yes
     
    Terry_w, 9th Jul, 2018
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  6. showtime94

    showtime94 Well-Known Member

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    Ok , because atm im paying 4.9% im going to try and get a better rate !
     
    showtime94, 9th Jul, 2018
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  7. showtime94

    showtime94 Well-Known Member

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    Its a interest only loan
     
    showtime94, 9th Jul, 2018
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  8. Terry_w

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

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    that doesn't change my answer!

    You can get an offset on an IO loan, but you won't get that rate.
     
    Terry_w, 9th Jul, 2018
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  9. Athikalaka

    Athikalaka Well-Known Member

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    Yes I have a loan IP product that can do fixed + offset... but you wouldn't get near the 3.xx% rate.
     
    Athikalaka, 10th Jul, 2018
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  10. Terry_w

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

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    1% is good - but could you get this? probably not!

    lenders out there may be charging upwards of 4% for an IO loan for investment.
     
    Terry_w, 10th Jul, 2018
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Asking a general question what is a good rate for XYZ product seems valid, but is not dissimilar to asking what is the price of a new car.

    various current and future needs, does one qualify etc are all more important than the price per se

    ta
    rolf
     
    Rolf Latham, 10th Jul, 2018
    #11
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