Hi.
1. Depending on the lenders you use, the impact of this change on your serviceability could be both positive and negative
Example: with ANZ; they take in consideration " loan balance" when calculating serviceability of existing debt- so in this case it will have a NEGATIVE impact....but given it's only $28k ( + LMI?) it's negligible
With NAB; they take "actual" repayments - so this "could" have a positive impact; given your loan is going from 8% down to 5%.
2. As mentioned it may "look" good to break this loan; but really work out if there's any the benefit on your overall goal.- what ever your goal may be
3. Your going from a 10+ fix rate down to a 5 years...why not keep it as variable since it sounds like your plans may change ( PPOR to IP etc) OR as mentioned stick with a lower fix rate period of 2-3 years.
4. You can break your loans into different splits; not all banks will accept this structure though as it's a LOT of work for the bank ( but im presuming your with Westpac or CBA, given your 12+ fix rate term??); Just note each product "split" has a MINIMUM loan amount...
5. Im still not 100% convinced on your overall goal??? what are you trying to achieve? improve serviceability? buy IP? release equity? reduce debt level? pay down ppor?
6. Airbnb is great; stayed in HK for one recently
1. Depending on the lenders you use, the impact of this change on your serviceability could be both positive and negative
Example: with ANZ; they take in consideration " loan balance" when calculating serviceability of existing debt- so in this case it will have a NEGATIVE impact....but given it's only $28k ( + LMI?) it's negligible
With NAB; they take "actual" repayments - so this "could" have a positive impact; given your loan is going from 8% down to 5%.
2. As mentioned it may "look" good to break this loan; but really work out if there's any the benefit on your overall goal.- what ever your goal may be
3. Your going from a 10+ fix rate down to a 5 years...why not keep it as variable since it sounds like your plans may change ( PPOR to IP etc) OR as mentioned stick with a lower fix rate period of 2-3 years.
4. You can break your loans into different splits; not all banks will accept this structure though as it's a LOT of work for the bank ( but im presuming your with Westpac or CBA, given your 12+ fix rate term??); Just note each product "split" has a MINIMUM loan amount...
5. Im still not 100% convinced on your overall goal??? what are you trying to achieve? improve serviceability? buy IP? release equity? reduce debt level? pay down ppor?
6. Airbnb is great; stayed in HK for one recently