Hello,
I am taking a loan of $423k for a PPOR. I had finalized CUA's 3 year fixed loan at 4.84%. As it seemed to be the only loan that came with the assurance of being a fixed rate loan as well as it came with an offset account.
Although I am none the wiser, but after reading online, the general consensus seems to opt for a split loan. After discussing this with my broker and it falling back as my decision, I am going by gut and splitting my loan at 70/30 Fixed/Variable. Primarily because even if there was a lot of variance on the 30% of the loan - it will not make too much of a difference in my ability to pay my monthly mortgage/savings.
The variable loan of $127k will be charged an interest at 4.65% and will come with an offset account. The fixed part $296k will charged at 4.84% and will come with its own offset. However, I also have an option of fixing the $296k at 4.69% with no offset. Assuming I will be able to put aside at least $2k every month into my offset (apart from having my salary get deposited in there and running it as an everyday account), would you please be able to guide me on which type of fixed loan would work best for me (with the main intent of saving interest and being able to create more equity) ?
Cheers
I am taking a loan of $423k for a PPOR. I had finalized CUA's 3 year fixed loan at 4.84%. As it seemed to be the only loan that came with the assurance of being a fixed rate loan as well as it came with an offset account.
Although I am none the wiser, but after reading online, the general consensus seems to opt for a split loan. After discussing this with my broker and it falling back as my decision, I am going by gut and splitting my loan at 70/30 Fixed/Variable. Primarily because even if there was a lot of variance on the 30% of the loan - it will not make too much of a difference in my ability to pay my monthly mortgage/savings.
The variable loan of $127k will be charged an interest at 4.65% and will come with an offset account. The fixed part $296k will charged at 4.84% and will come with its own offset. However, I also have an option of fixing the $296k at 4.69% with no offset. Assuming I will be able to put aside at least $2k every month into my offset (apart from having my salary get deposited in there and running it as an everyday account), would you please be able to guide me on which type of fixed loan would work best for me (with the main intent of saving interest and being able to create more equity) ?
Cheers