Hi all,
My partner and I are in need of some advice in regards to restructuring our home loans. We purchased our PPOR just over 1 year ago and were planning on purchasing another property in a couple of years.
Our current loan structure is as follows
Fixed Loan Amount 218k expires in April 2015
Variable Loan amount P&I 78K
100% full offset account 81k
We have been talking about buying a new property in a couple of years that will become our PPOR and our existing property will be turned into an IP. My main concern is making sure my current loan structure supports our plan.
A few questions I needed help with were, once the fixed portion of our home loan is up is it easy to consolidate the two loans into one variable loan? or will we forever have two separate variable loans? Should we look at switching the variable loan from I&P to IO now, knowing that we want to turn our current PPOR into an IP later on, or should we wait?
We're also a bit concerned because we have extra funds in our offset account that aren't being used to offset our variable loan and will continue to grow until April 2015. I was thinking of taking that money and putting it into a high interest savings account until then as nothing over 78k will be offsetting the variable portion of our home loan. I really regret fixing such a high amount of our loan now.
We would really appreciate your thoughts on the above points...
Cheers
My partner and I are in need of some advice in regards to restructuring our home loans. We purchased our PPOR just over 1 year ago and were planning on purchasing another property in a couple of years.
Our current loan structure is as follows
Fixed Loan Amount 218k expires in April 2015
Variable Loan amount P&I 78K
100% full offset account 81k
We have been talking about buying a new property in a couple of years that will become our PPOR and our existing property will be turned into an IP. My main concern is making sure my current loan structure supports our plan.
A few questions I needed help with were, once the fixed portion of our home loan is up is it easy to consolidate the two loans into one variable loan? or will we forever have two separate variable loans? Should we look at switching the variable loan from I&P to IO now, knowing that we want to turn our current PPOR into an IP later on, or should we wait?
We're also a bit concerned because we have extra funds in our offset account that aren't being used to offset our variable loan and will continue to grow until April 2015. I was thinking of taking that money and putting it into a high interest savings account until then as nothing over 78k will be offsetting the variable portion of our home loan. I really regret fixing such a high amount of our loan now.
We would really appreciate your thoughts on the above points...
Cheers