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.

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  1. James Bond

    James Bond Well-Known Member

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    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
     
    James Bond, 20th Mar, 2020
    #1
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    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?
     
    Lindsay_W, 20th Mar, 2020
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  3. JasonC

    JasonC Well-Known Member

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    AMP do.

    Regards,

    Jason
     
    JasonC, 20th Mar, 2020
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  4. James Bond

    James Bond Well-Known Member

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    Well I need 5 offsets against one loan....
     
    James Bond, 20th Mar, 2020
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  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Immediately coming to mind:
    * Macquarie
    * Suncorp
    * AMP

    A couple of the smaller banks/credit union type lenders do this as well.
     
    Peter_Tersteeg, 20th Mar, 2020
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  6. Morgs

    Morgs Well-Known Member Business Member

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    Bankwest
    AMP
    Suncorp
    etc
     
    Morgs, 20th Mar, 2020
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  7. Lindsay_W

    Lindsay_W Well-Known Member

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    Not a huge amount so should be easy then, plenty of others with much better rates as Pete and Morgs have listed above.
     
    Lindsay_W, 20th Mar, 2020
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  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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
     
    Paul@PAS, 20th Mar, 2020
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  9. James Bond

    James Bond Well-Known Member

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    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.
     
    James Bond, 20th Mar, 2020
    #9
  10. Terry_w

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

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    That doesn't change anything
     
    Terry_w, 20th Mar, 2020
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  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    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.
     
    Paul@PAS, 20th Mar, 2020
    #11