Hi guys. just need some input from ozbargainers.
Im currently having a homeloan into a variable rate 5.05% with offset account of $80K
I noticed that the fixed loan have lower rates however the thing with fixed loan, you cant have the benefit of the offset account.
I contacted our bank today and they offer me a combine loan. so put half of my loan onto fixed and half onto variable.
Does anyone ever have experience this combine loan? if so do you think this is saves you money to pay interest?
Thank you
Combined is the best of both words. Variable allows you to pay it off quicker and drop your entire salary into it, living off your credit cards and reduces the interest paid. Do this to half of the amount and fix the other half for a set period. So your paying off the variable for that period getting the interest benefits and the other half has the lower overall interest rate. Also protects you should the market go bust and rates go up. The fixed is safe and the new rates only impact half which you should be throwing everything you have at regardless. End of the fixed term, combine and half again, rinse and repeat.