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Thanks for your replies. I have opted for 70% of the loan on a fixed rate at 4.69% and 30% of it at 4.65% variable and made the variable as IO. Cheers

Thanks for your reply Redom. LVR is at 90%

Thanks for your reply Jess. I spoke with my broker in the meanwhile about converting the entire loan amount as IO but he says the lenders look down upon a first home buyer to be going for an IO only given that owner occupied purchases are mostly P&I loans and to get IO on the entire loan is...

Hey Jamie, Thanks for your quick reply. So would it be better to setup both the fixed and variable loans as IO ? Or in my case just the variable part ? Then, does it still make sense to opt for the lesser fixed rate interest (with no offset) ? Also going IO does not help in creating equity...

Yes. I will be looking to extract equity in the future. Nothing is concrete yet, but I think in 5 years, as the family outgrows this house, this'd be an investment property. That is one of the reasons why I am not too interested in making the loan as IO as I want to be able to pay off a bit on...

Thank you Redom. I had arrived at this conclusion too. But wouldn't the savings, on the term of the loan, be greater if I chose the three year fixed rate with offset ? More so, if the variable rate keeps in synch with the market sentiment and if it goes down then I'd be losing on the interest...

Yes, even I think I am over thinking this. But since the time I started reading the forum here, the peer pressure to have a goal and accumulate a few IPs is high :) so the fear of failure is what is making me ask this question now. If I could accurately calculate the difference and savings...

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...