Split loans - how much?

[Zeddy]

With the recent upwards start in fixed loan rates, I am going to fix my loans. A bit of background:

1. I have two IPs in the Adelaide CBD and suburbs bought in 2007 and 2008 respectively.
2. I have borrowed amounts of $224,400 and $216,000 respectively.
3. I have paid down the first then redrawn to buy the 2nd IP. Current loan amounts are $220k and $190k respectively.
4. IP #1 currently CF neutral, IP #2 currently slightly CF-
5. My partner and I intend to travel overseas next year (a long time dream of hers).

The fixed rates at my lenders for 3 years is 0.3% above their variable rate at the moment.

My plan is to fix loan #1 completely, and have a split for loan #2 (90% fixed, 10% variable) for 3 years. This means that I can pay up to $10k in additional repayments for each of the loans PLUS a bit more flexibility for the second loan.

This way I have stability in repayments during my travelling period, yet keep enough flexibility to make additional repayments if I somehow find enough money (don't think this is too likely...). When I get back after the year of travelling, and my income is more stable, I have the ability to increase my additional repayments again.

Any comments or opinions from the learned ones of Somersoft? I would greatly appreciate any insights that are offered.

 

[Rolf Latham]

Which lender pls ?

ta
rolf

 

[Zeddy]

I use MyRate and OneDirect. I understand the former get their funds from ING; the latter get their funds from ANZ.

 

[Rolf Latham]

K

I was hpoing youd say CUA, Adelaide / Bendigo.

Both of those have offset on fixed and that would work a treat.

Heritage I also recall there are no limits.

I am not familiar with the finer details of the Badge engineered ING and ANZ products

ta
rolf

 

[Zeddy]

Thanks Rolf, I'll have to keep those lenders in mind next time I buy.

Any other Somersoft boffins want to lend their expertise?