I am having problems at the moment deciding between the fixed interest and the offset accounts. We are getting a loan through Bank of QLD (provided our equity is released on our current home loan) - they are our best option (we don't have many) as we need a 95% home loan.
So we are stuck between going the 5yr fixed and setting up a cheque account seperate for the IP finances. Or going the variable rate with an offset account.
So my question is what would everyone here do? And why?
obviously the benefits of the fixed interest is that we would know what our repayments will be for the first 5yrs.
On the other hand I don't think rates will be going up anytime soon (tell me if I am wrong), so maybe it isn't a big risk in the short term anyway???
So we are stuck between going the 5yr fixed and setting up a cheque account seperate for the IP finances. Or going the variable rate with an offset account.
So my question is what would everyone here do? And why?
obviously the benefits of the fixed interest is that we would know what our repayments will be for the first 5yrs.
On the other hand I don't think rates will be going up anytime soon (tell me if I am wrong), so maybe it isn't a big risk in the short term anyway???