Hi All,
Would like to ask for opinion.
I am going to refinance my investment property i bought 2 years ago.
I am refinancing it with ANZ
2.29% fixed 2Years interest rate (no offset) for 30 years terms with $3k rebate (max extra repayment is $5k)
I would like to ask your opinion about this loan package?
Im a bit hesitant because its got no offset.
Do you need offset?
It would be good to have it
Fixed interest loans don’t have an offset account. But once it comes out of the fixed and into variable you can get one added on.
I’m on the Breakfree package variable, put it into fixed for now and they said my offset would be inactive during the fixed period.
Also with a fixed interest you are capped with additional repayments, have to ask them what this figure is.
Actually offset accounts come lately with fixed rate loans, I have just refinanced a couple of weeks ago to Unibank fixed rate + offset account
His asking about ANZ.
I know, I am saying that options with offset are available and if it is a must component, other banks are available
I went with a similar offer (fixed 2 year for 2.29%) but $4k rebate instead of $3k, and was of the same mindset. As such, I ended up splitting the loan between fixed and variable noting that the variable rate was 2.79% (not great but lower than what we are currently on (2.96%)).
I would recommend doing that if you are concerned about having no offset and think about what percent of fix and variable works for you - for us this was 90% fixed and 10% variable.
Alternatively, you can look around for fixed loans with offset. From memory, I believe ANZ do have offset for 1 year fixed. Someone also recently told me that Westpac does a 2.29% fixed with 100% offset, but have not checked this out given I just settled with ANZ.
You haven't listed the fees OP.
its $$395 per year and $400 government charges on settlement
So from a comparison rate it isn't that sharp.
I thought investment loan with ANZ is 2.49% fixed for 2 years. Do keep in mind the $395 package fees
Get fixed for 1 year which comes with full offset.
No offset no way
Yes