I have a PPOR and the loan has offset and redraw facilities. The offset is also my transaction account which I use to pay bills, receive salary, access from ATMs etc. All these years I have been paying all my extra money into my PPOR loan account (instead of the offset) as I didn't like lot of money sitting in my offset (as it is my transaction account) After reading lots of valuable posts in this forum, now I believe I should have split my PPOR loan and kept extra money in the offset accounts although I have no immediate intention in converting my PPOR to a Rental property. Here is the current setup. PPOR Loan : 550 K Redraw available : 80K (due to my extra payments) I may redraw some of this (upto 50K) in the future for personal expenses. Given this situation, Is it better to redraw now and then split the loan ? Should I get my loan split into 2 so I can have 2 offset accounts link to the loan (one for each split). I can use one offset to park my extra money and other linking to my transaction (current offset account)
The reason is I don't like to keep all my saving in the offset account because it is also my everyday transaction account. All my transactions going in and out of that. If I open up another account and make it the offset account and keep the transaction account separate, I will loose the offset of few thousand dollars at any given time. That is why I thought to split the loan so I can make the transaction account as the offset of one split and a new account (where I can park my savings) as the offset of the other split.
I do this. I keep $x in Offset A which has a debit card, and the rest in Offset B (both linked to the PPOR loan). This is with Macquarie.. allows 10 offsets per loan, so you can have an offset for every occasion if that suits you.