Implications on fixing a variable home loan with redraw funds available?

[The_Bludger]

Hi, I have a couple of variable loans that have redraw funds available. I am planning on fixing to Westpacs special offer of 4.99% for 2 years. What are the implcations of doing this? One of the loans has $70K available and the other $100K available. I have never used the redraw facility on these two loans and wouldn't be needing it over the next 2 years(term of the fixed loan).

Thanks.

 

[Peter_Tersteeg]

You may end up loosing access to the redraw facility entirely.

Why not split your loan so part is fixed and part remains variable? You can part those funds in the variable portion.

 

[Rolf Latham]

wesuck have a very simple tick and flick fix and split process

So send an email to your broker or banker,get them to split out the redraw portion into a new RRIL or RRHL split and fix the balance.

try that with ANZ .............

ta
rolf

 

[Shahin_Afarin]

Splitting the loan into a fixed and variable component should be considered. I have a lot of people on this set up so that take can advantage of both the fixed rate as well as the offset component for the variable portion.

Of course some lenders have offset on fixed but you generally paid a premium on the rate.

Regards

Shahin