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seeking some account advice

Discussion in 'Introductions' started by Amy, 18th Jul, 2011.

  1. Amy

    Amy New Member

    Joined:
    18th Jul, 2011
    Posts:
    3
    Location:
    Melbourne, VIC
    Hi everyone, I was just after a few opinions.

    Currently there is a 90k mortgage sitting in a standard variable economiser account, locked in until 2012, with 5k in redraw.

    There is also 3k sitting in a savings account earning 5.75% interest for the next 3 mnths which will then drop back down to 4.75%.

    I queried my back as to whether an offset account was available, their response being that I will have to wait until the expiration of my economiser period until I am able to get an offset account without incurring any fees.

    I'm not satisfied with this answer and was wondering if anybody had any suggestions.
     
    Last edited by a moderator: 18th Jul, 2011
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Moving to an account that has an offset facility probably requires a refinancing of the loan - which effectively means paying out the old loan and setting up a new one.

    Cost should be minimal when doing this with the same bank, so that's not a big deal. However, if your current loan is fixed interest, then there may be break costs involved - which can be quite expensive.

    Can you confirm whether your current loan is fixed interest?
     
  3. Amy

    Amy New Member

    Joined:
    18th Jul, 2011
    Posts:
    3
    Location:
    Melbourne, VIC
    It's not fixed interest, it's variable