Originally posted by Simmo
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This is one for the brokers:-
How much more secure are your funds in an offset as opposed to a plain old R/C?
When I bought my PPOR I set myself up through BNZ with TotalMoney, partly due to the widely accepted belief that the savings accounts are "safe" from the bank, and also the ability to have large amounts of cash available just in case the deal of the century came by.
I have to wonder if push ever came to shove the bank would simply send you a letter to "repay xxx principal by xxx date...or else" kinda defeating any perceived gain? I guess they won't do that if your $$ in savings significantly outweighs the mortgage balance, but interesting nonetheless.
Does anyone have any real life examples of when things have gotten tight with offset loans?
How much more secure are your funds in an offset as opposed to a plain old R/C?
When I bought my PPOR I set myself up through BNZ with TotalMoney, partly due to the widely accepted belief that the savings accounts are "safe" from the bank, and also the ability to have large amounts of cash available just in case the deal of the century came by.
I have to wonder if push ever came to shove the bank would simply send you a letter to "repay xxx principal by xxx date...or else" kinda defeating any perceived gain? I guess they won't do that if your $$ in savings significantly outweighs the mortgage balance, but interesting nonetheless.
Does anyone have any real life examples of when things have gotten tight with offset loans?
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