Hey all, about to refinance from a bank that allowed multiple offset bank accounts on the one loan, to one that only allows one account, but will split the loan as much as you like to give a similar effect.
I realise this means a lower maximum that can be offset per account, and slightly more admin PITA when rates and payments change. Other than those issues, is there anything I should be wary of about this? PPOR by the way.
Cheers.
When the bank rep made the offer in the carpark he wasn't specific.
For e.g. using round numbers to make it easy, you have a 400k loan with 4 splits. Each split is 100k. Each split has an offset account. Each split has exactly the same interest rate. There are no additional fees etc.
Yeah, but when you want to take money out/put money in, how do you/the bank know which split to apply it to? It's one bank account, I don't understand how that would work technically.
Its not one bank account, you've misread the OP, apologies if unclear. Its effectively four loans, each with its own attached account.
@jsheroes: ohhh I see.
I've not experienced this personally so can't help.
Sounds like it's just a different way to do the same thing.
Hopefully someone can explain any pros/cons.
There's a couple of active mortgage brokers on this site, maybe they will be able to comment.
Hey OP, I can’t answer your question, but very interested in which bank you were with where they allowed multiple offsets on the one loan, if you’re at the liberty to disclose that. Sounds like something that would be very useful. Cheers :)
Pretty sure many allow this - I know Suncorp do/did.
Several do it. Newcastle Permanent and I believe some of the big 4, poss St George. Not a unique thing. Anyone have anything to add on the OP?
How does that even work with one account? How do they know what money is what and at what rate?
What fees are day to day fees are involved?