Hi All,
I am on the market for re-financing and cannot understand few things as I cannot find any comprehensive calculators.
My current situation:
CBA Variable at 3.03% with package (100% offset account)
Property value: approx $630k.
Loan balance: $480 (LVR 75% approx).
Saving in offset account: $90k and + $3-$5k every month.
Re-financing offer I have received:
- Entire $480k in variable at 2.84% with package (100% offset)
- Split $300k in fixed at 2.19% and $180k in variable at 2.84% (100% offset for variable only).
All mortgage brokers I spoke recommended to have split home loan ($300k in Fixed $180k in variable) and get it reviewed every 1-2 years. I was told this will save in interest. From what I can calculate, having $300k in fixed with no offset will cost more interests than having entire $480k in variable with 100% offset because I can get full benefit of offset with 100% variable whereas I will only be able to get the benefit up to $180k.
Would anyone please help me understating this? Your insight will be appreciated!
Looks like a good offer. Who is it with?