Just wondering if people aware of home loan that offer free offset amount . Typically you need to pay $300-$400 per year. I saw a post recently where the lender had free offset account. Can't remember the name.
Home Loans with Low Rate and Free Offset Account
yjun355 on 01/11/2022 - 09:49
Last edited 01/11/2022 - 11:16 by 1 other user
Last edited 01/11/2022 - 11:16 by 1 other user
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Yeah I checked out. Athena advertise as 4.54% but when you go through eligibility it is 4.64%. not significant discount.
$300-400 per year can be worth it when you end up offsetting $300-400 per month in tax.
I believe ANZ charges $10 per month for an offset account. $120 annually is good value.
Thanks. I think they have a refinance cashback offer going on at the moment as well
hold your butts
another 0.50% rise on the way today
another 0.50%
Settle down Phil
Nothing is "free".
You either pay for it through higher interest rates, lesser functionality or flexibility, poor customer service, fewer product options, or any number of other matters.
If you want to narrow it down to price though … $300 per year on a $300,000 mortgage is equal to 0.10% p.a. Adjust all other numbers accordingly.
Tic Toc charge $10 per month for an offset account.
does tic toc pass on rate cuts automatically or is that only for Athena?
They weren't great at doing that, they would take their time and not pass on the full amount. Although I don't think you need to worry about that for a while.
Which lender do you find are the best with passing on rate cuts?
Suncorp don’t charge for their package
This could be a fallacy as "free" means it's bundled into higher interest rate so make sure you cross-compare in detail.
Athena and Homestar offer free offset accounts but certainly higher rates than competitors so not worthwhile. YMMV.