Home Loan Offering Multiple Offsets Which Allows Partner Who Is Not on the Title

LCptHowdy on 13/12/2018 - 11:57

Hello all,

I currently have a home loan with Bank Australia with an offset account linked to it.

I have been living with my partner for over 10 years in a defacto relationship.

My partner now has substantial savings sitting in a account with another bank earning next to no interest. I contacted Bank Australia and they said we can have multiple offsets pointing to the same home loan. But, she will need to be on the home loan and the title of the house. To make any of those changes that would involve refinancing and contacting the titles office (stamp duties fees).

We would prefer to keep things separate at the moment eg separate accounts.

Has anyone come across any banks/credit unions that offer separate offsets pointing to the one home loan under different names?

Speaking to a financial planner they said the AMP offer it but would prefer to avoid them if possible.

Thanks

Financial Home Loan Loan

Comments

  • stratbargain on 13/12/2018 - 12:19

    I know when my wife and I signed up to loans.com.au because her name was on the loan but not on the title they wanted her to get a form signed by a lawyer to say she understood what she was getting herself into (loan under her name and title not) before they would give us the loan.

    So you should be able to find a bank that will do it without having to get the title on both names… Although that was a while ago so things have probably changed.

  • djkelly69 on 13/12/2018 - 12:30

    Speaking to a financial planner they said the AMP offer it

    I just discharged my loan with AMP, but had been with them for about 10 years. Think I had a 'Basic' or similar homeloan, which offered an offset with no annual fees. I spoke with them a couple of times about adding additional offset accounts (not in other names, just in the same names as the loan), but they said they couldn't do it.

    Might be different with different or newer loan products.

  • FoxJump on 13/12/2018 - 14:15
    +2

    Could you just open an offset with your name and transfer the money to it? With a contract or agreement between you two? Then maybe at the end of the financial year you give your partner their share of the interest they saved you?

  • Glider on 13/12/2018 - 15:27
    +1

    Refinancing would be a pain, but re the stamp duty bit, in my experience no stamp duty was payable when including a defacto partner onto a property title in WA.

  • BargainShopaholic on 13/12/2018 - 17:10

    I just refinanced with CBA, they allow multiple offsets. I made my dad an authorised signatory for one of the accounts, so he can use it however he likes. He has no access to any of my other offsets. This formula may be something you could consider.

    • CptHowdy on 13/12/2018 - 17:41

      Bank Australia offered the same solution.

      Is the account labelled with both of your names? Say for giving your bank details for transfers, deposits etc.

      • BargainShopaholic on 13/12/2018 - 18:23

        I’ll have to find out when my first statement comes out. But what they explained is that my dad has his own card, and can give his name as account holder if someone wants to transfer him money.

  • Sofie519 on 13/12/2018 - 20:22
    +1

    It's not about whether lenders would allow u you offset your partners money without being on the title, it's about whether your partner trusts you enough not to be on the title.

    You do have several options and it depends on how both you and your partner wishes to approach this.

    If this is your principal family home adding your partner to the title may be eligible for stamp duty exemption.

    If you don't want to add her to the title, you can both go to a solicitor to draft a loan document for the amount, there can be terms such as interest and/or how repayments are made and/or when it is repayable etc. E.g. repayable on on sale of property or discharge of mortgage or other terms.

    Your partner can also decide if they want to register a covenant on the title or register a second mortgage etc. This loan agreement can be independent of your existing loan, so the lender doesn't need to be involved thus the loan needn't be changed.
    (it is important for your partner to have independent legal advice.)

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