Techno Freak

Hello all....

Just a quick query regarding Australian bank accounts.

Does anyone know of a bank that offers a truly flexible banking product such as the UK's Intelligent Finance account - or Virgins One account?

We have an Intelligent Finance account in the UK and it has been fantastic for us.

Basically we have one 'Plan' which is accessed online and consists of our mortgage, 3 current accounts ( mine, Emma's and a joint one ), and several savings 'pots'. Then, what happens is that your mortgage interest is worked out on the net amount that you owe the bank. So any money in your savings and current counts is deducted from your mortgage amount before they apply the interest calculation on the mortgage. You therefore only pay interest on the difference.

You obviously don't get interest paid on you savings or current account money - but you end up better off as you get higher tax relief on your mortgage interest.

Virgin One is similar, only you just have one big pot rather than several account in one wrapper. Effectively your mortgage is a huge overdraft and everything that goes into the account chips away at it.

I wondered if anyone knew of similar products available in Australia?

Thanks.

cloughie

Hi

When this first got to the UK it was called the Aussie Mortgage and the concept originated over here.

So yes most banks offer this type of account, though they call it something else, offset i think. Frequently they link credit cards as well

Wendy

We have just got an offset mortgage with the Commonwealth bank. 2 accounts plus a credit card account. It costs $8 a month unless you have over $50k in equity in it.

Techno Freak

Great stuff, thanks.

I seem to remember now that when IF & Virgin One hit the scene they were based on Australian models. I just havent heard anyone on the forums mention them.

Wendy - could you only open your account when you took out your mortgage? I'd like to open an account now that will let me add a mortgage later.

Thanks.

Wendy

I don't know, I'd never enquired before that.

Maybe send them an e-mail and see what they say, or have a word with them in the UK. The website is http://www.migrantbanking.co.uk/ you'll get some phone numbers off there.

If you can do it that way then just open an account from the UK when you are near to your leaving date, it will probably make things a lot easier.

GinaUK

Hi Techno Freak,

many lenders call this type of mortgage "line of credit".

Go to www.google.com.au and type in "line of credit" (with the quotation marks) and read any of the links.

Gina

Swerv-o

having done quite a bit or fesearch on this, I think you will struggle to beat the All in One (Line of Credit) loan from these people:

www.myrate.com.au

They offer some really flexible loan mechanisms, and are really clued up to saving you as much money as possible, for example offering an interest free credit card and balance sweeping system.

They don't charge any fees for applications, monthly account keeping fees etc. Have a look. I think I'll be applying for one when (and if!) I ever find a place to make an offer on!

S

Techno Freak

Thanks for the info everyone. I'll take a look at that link now Swerv-o - thanks.

Techno Freak

Just checked out that myrate site - looks right up my street. I doesn't look as though I can open a bank account part with them first though, and add mortgage later.

I think for the moment I will need to open a simple bank account with one of the main banks, then change the lot over to something like myrate once we need a mortgage.

Cheers.

Centurion

So are there any accounts in Australia that are like the Virgin One account....

er.yes....www.virginmoney.com.au

100% offset fee free account.

Swerv-o

Not quite fee free - Virgin don't pay your legal fees ($310) and they do charge for ATM withdrawals after the first 5...

S

Techno Freak

Cheers - I must admit, I never even thought of checking to see if Virgin operated in Oz. That'll teach me never to assume anything.