As per the title, does anyone have an owner occupied home loan (preferably with a bank) with an interest of 3.7% (or lower) with 100% offset and no annual package fee?
From my research, I haven't been able to find one but I'd like to negotiate my current rate of 4% by showing an equivalent rate in the market.
Thanks sweefu. Are there any banks who offer sub 3.7% with full offset or are they all non-bank lenders?
ING
ME Bank
Bankwest
All the above currently offer variable rates with full offset at 3.70% or less.
Happy to email you a written quote you can use to negotiate.
Is this the same when refinancing an existing loan? I tried renegotiating with ME on an existing sub-$400k loan, the best they would offer was a 0.5% drop from 4.6-ish to 4.1% This is despite Canstar and free-to-air TV ads all advertising 3.69% or better. Is this only valid for new business? Why is my money any different to a new loan?
No, unfortunately some lenders provide better pricing to new customers to win new business.
However, if you have a written quote to use to negotiate that can help. PM if you want me to send one to you.
hsbc full offset variable no fee under 3.7
Are you sure with offset? The one on their website is 3.59% no offset.
cua
I don't quite understand why you need an offset account. Can't you just deal with a redraw account? If you just manage your finance better you'll save a lot of money in the long run.
Anywho - Loans.com.au will give you 3.62% if you really need an offset or 3.54% with a redraw. You can also get a referral bonus.
Convenience. Offset gives you access to cash at an ATM, pay a bill etc at the drop of a hat.
I've always had an offset with no penalty (currently with TMB with a fixed loan - 3.7% and still 100% offset).
But if Redraw is fine, then I would consider it. But I guess you would have to plan transfers/ withdrawls up to 48hrs in advance?
AFAIK Tax implications apply using a redraw vs an offset.
Money in an offset can be moved to an offset of a new property if you change pppr. Once u put money in a redraw and redraw it, you cantclaim the interest on tax
True dat
State custodians?
@ rambutann There are tax important implications of using a redraw if you plan to later can convert to rental a property.
I’ve always had the offset acc (not transactional, min withdrawal $500), so I don’t know how redraw works. But every time i talk to the bank, they always try to push redraw (it was a bit hard to apply for the offset at the start). Is this the only diff?
I’m with cba and have been looking for refinance for awhile (have a unwilling partner).
what do you mean by push redraw ?
bank usually push for offset account and charge you annual package fee
HL w/o offset usually no annual fee
Stix,
Just on to the Rate City website and take your pick. My pics would be TMB fixed for 2, Homestar 3.54 (with a cashback to offset the fees), Virgin Money 3.7 odd with a bag of FF points.
Or StGeorge at 3.69 no frills (redraw only though)
Homestar also offer a lower interest rate for 70% LVR, but miss out on the $1200 cash back
(worked out cheaper in the long run though)
How long have you been with them? any issues? customer service post settlement?
Settling in next week or so on current loan, but I was with them a few years back.
If I had an issue with them, it would be that they're inconsistent with their interest rates. They were cheapest so I refinanced to them, then a few years later they were others cheaper, so I left. Now they're cheapest again!
Back in the day they didn't have the offset account. I don't recall whether they gave debit card directly on loan account, or whether I had to tfr funds to a linked account. They used ING. It worked fine for us.
They now have the offset account with debit card, but lender is Perpetual Corporate Trust!!?? So don't yet know what ATMs we can use etc.
I have recently learned (here I think) that offset accounts are a bit vulnerable with non-bank lenders. i.e. your loan with survive their bankruptcy but your offset account won't.
Bank of Sydney. 3.63%, full offset, no annual fee, no application fees. Need 70% or better LVR though.
are you with them? If so, how long and how do u find them?
No sorry, mid refinance.
AMP Professional package 3.59% includes multiple offset accounts but an annual package fee applies
You can access the AMP shareholder package @ 3.69% with all fees waived & offset but only catch is you have to own 1,000 AMP shares while you set it up. You can sell the AMP shares afterwards (what I did).
That's interesting. Do you know if they are still doing this. Thanks !!
+1 for the AMP. It’s what I have.
If you loan is > $100k, then the $400 AMP fee is much less than the savings from interest.
You'd have to have a mortgage over $1,000,000 for that to be lower cost p.a. than the Bank of Sydney deal.
Great! My 2m mortgage is worth it!
Sucks to be you 😂.
http://www.reduceloans.com.au ? They will offer lower rates to new borrowers, I suspect existing borrowers are around the 3.65% mark
Thing to watch out for with these guys are the absolutely massive fees upfront and at exit. In many cases will overrun the savings you'll get from the lower rate for several years. Also, no Oz gov't guarantee on your savings in the offset.
Anyone heard of Resimac? A broker has recommended them and their rate is 3.64% variable but there isnt much info on them?
They fund State Custodians. Limited time offer of 3.54% - https://www.statecustodians.com.au/low-rate-home-loan
CUA
3.65%
No ongoing fees
90% LVR too
Hi,
Broker here. Best product that I have available is Vow Home Loans by Macquarie Bank at 3.54% per annum up to 2 free 100% offset accounts with unlimited ATM withdrawls Australia wide and a top notch mobile app. ZERO ongoing fees and a $363 settlement fee. This is for owner-occupier and up to 70% LVR. Achieved by having no trail paid to the broker.
The rate is an ongoing discount off the Macquarie standard variable rate and not an intorductory/honeymoon rate.
Feel free to shoot me a PM for more info. Can also do 3.89% on investment P&I with the same lender and without needing to cross collatoralise.
note: Ozbargain only :)
80% LVR is at 3.64% per annum, which is still highly competitive and the bank policy is in line with Big4 (e.g accepts maternity leave, equity cash out up to 250k by just needing to state a purpose, very simple for future top ups/approvals if wages paid to Macquarie/Vow Home Loans account..etc)
Feel free to shoot me a PM and I will send you a credit guide and brochure with more info.
Interested - mind turning your PM on?
Done.
Hi
Do you have something similar for owner-occupied interest only?
thank you!
Broker here.
Several lender have sub 3.7% rates with full offset, but all have an annual fee of $290 - $400. I can get this waived for the first year only.
Alternatively, Teachers mutual bank will do a 2 year fixed rate around there with full offset, but establishment fees are expensive.