Which lenders apart from CBA allow multiple offsets against one P&I PPOR loan?

Discussion in 'Loans & Mortgage Brokers' started by James Bond, 20th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    Hi - I want to look around, but I need to retain the ability to have multiple offsets against one P&I PPOR loan.

    Can anyone advise other lenders apart from CBA that permit this?

    I'm also happy to hear from any mortgage brokers that would be interested in helping me with this exercise.

    Thanks
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,465
    Location:
    QLD
    Plenty of lenders offer more than one offset via their package products so it's not really the limiting factor but it does depend on how many you need? - What other requirements do you have?
     
  3. JasonC

    JasonC Well-Known Member

    Joined:
    14th Mar, 2017
    Posts:
    227
    Location:
    Sydney
    AMP do.

    Regards,

    Jason
     
    Terry_w and James Bond like this.
  4. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    Well I need 5 offsets against one loan....
     
    Lindsay_W likes this.
  5. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,340
    Location:
    Here.
    Immediately coming to mind:
    * Macquarie
    * Suncorp
    * AMP

    A couple of the smaller banks/credit union type lenders do this as well.
     
    James Bond likes this.
  6. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,041
    Location:
    Sydney NSW
    Macquarie
    Bankwest
    AMP
    Suncorp
    etc
     
    James Bond likes this.
  7. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,465
    Location:
    QLD
    Not a huge amount so should be easy then, plenty of others with much better rates as Pete and Morgs have listed above.
     
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,146
    Location:
    Sydney
    That can be a dangerous situation if any deductions are involved. You will then have a blended loan. Terribly messy and likely to mean no interest tax deduction is available if any element is a deductible use. Using any of the offset amounts would constantly affect the % that is deductible or even used for any purpose. A nightmare really.

    Legal Database

    Also the general principles in this ruling too Legal Database
     
  9. James Bond

    James Bond Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    209
    Location:
    Melbourne
    All the borrowing is for investment refinancing. I have borrowings against my PPOR only for investment purposes, it was debt free before I began investing.
     
  10. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    30,884
    Location:
    Australia wide
    That doesn't change anything
     
    [email protected] likes this.
  11. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,146
    Location:
    Sydney
    May actually be a confirmation of a problem.

    ATO reviews property B. Interest deduction is $1100. They think its miscalulated and looks too high. You cant actually indicate the degree to which is wrong and of course it could affect another property. Maybe. The ATO start to frown and think its really all too confusing due to contant changes to each offet and you didnt use the methodology in the previously noted ruling. So they cancel that deduction due to a apportionmnet concern and inability to provde every single use of all borrowed funds from day one all the way through. . And the other uses as well.

    I would argue a multiple offset blended loan is far worse then a blended purpose where there are just two different uses. Offsets tend to become like a pureed fruit cocktail and you want to drink the strawberry part only then the orange bit then the passionfruit.