Fixed home loan, no offset. Liquid investment options instead.

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  iampoor on 19/11/2020 - 12:03

  Fixed for the vast majority, give yourself some headroom in variable portion if there is any possibility of the amount you can hold in offset increasing over the 2 year period.

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  whooah1979 on 19/11/2020 - 12:43

  -1

  Move to fixed, invest 50k Bitcoin #YOLO

  You will get rekt. Stick to fiat.

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  soan papdi on 19/11/2020 - 13:39

  Don't forget exit fees from ING will eat into your 3k interest saving. Mine worked out to approx $1100, YMMV

  • 

    Scorn on 19/11/2020 - 13:57

    Yes but, $2k bonus for switching will cover this plus more.

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  netjock on 19/11/2020 - 14:17

  +1

  Depends on your loan size

  Stay variable, and keep funds in offset.

  If 10k mortgage and you are going to save another $20k into offset in the next year then this is best option.

  Some Fixed, keep portion variable to use offset.

  For most people with big loans this might be best idea. Even 1 year fixed is lower than variable. For 1 year fixed you can only be maximum of 11 months and 29 days of being a fool.

  Move to fixed, keep funds in HISA (easy to access)

  0.25% interest rates, depending on loan size you might need a very large loan to make up the difference.

  Move to fixed, invest Commsec (difficult to access)
  Move to fixed, invest Spaceship (more liquid)
  Move to fixed, invest 50k Bitcoin #YOLO

  If you can stomach potentially losing 10% in a day flash crash, hold and getting back to original position in about 1 month once government and central bank come to save the day.

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  macrocephalic on 19/11/2020 - 14:18

  +1

  It's pretty much a question of risk appetite and time frames. If you had 5+ years before you needed the money then putting it into ETFs would be better, but you have to have it in there long enough to ride any ups and downs.

  • 

    Scorn on 19/11/2020 - 14:23

    Sage advice. And judging by responses so far in poll, people's risk appetite says "stay in variable" (double any other option at time of writting).

    • 

      hoey888 on 19/11/2020 - 14:58

      Just remember to keep all bank accounts with the ADI bank under $250k to maintain Federal Government Bank Guarantee.

      If you over, consider other things like investing, paying down loan and moving to another bank.

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  Seraphin7 on 19/11/2020 - 15:45

  Firstly, you need to keep some liquid cash available (whether in a bank account, offset, redraw … doesn't really matter) to cover yourself for unexpected expenses.

  That said and keeping that buffer available, have you considered paying down the loan as much as you can now, moving to fixed, enjoying the interest savings, and then refinancing at the end of the fixed period to effectively give you the equity back for the "down the track" purposes you've outlined?

  Not necessarily recommending that course of action, but one that you should at least consider.

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  Trying2SaveABuck on 19/11/2020 - 23:31

  Im going with invest 50k in bitcoin YOLO

  • it is something i would never do and if i did knowing my luck it would tank the next week. However someone else (like urself) would do it and Bitcoins value will fly