Re-Finance Options & Opinions

Actionman77 on 21/08/2021 - 16:57

My current circumstances;

$270k in Westpac Offset Account

Investment Property loan (split, fixed/variable):

$169k Variable (2.94%) (fully offset by above account)

$210k Fixed (3.78%), fixed rate expires next week.

I'm thinking of switching to Tic Toc, as the best Westpac can offer me for the expiring fixed loan is 3.94% variable or 2.09% fixed.

Wondering if I'm better off investing the $270k, instead of it offsetting the IP loan, given interest rates are relatively low?

Value of the IP is approximately $460k.

Any feedback would be welcome.

Comments

SmiTTy on 21/08/2021 - 17:17

Depends what plans you have for the funds. Looking to buy another property? Or no immediate plans

If you need the funds soonish, the offset is probably the safest bet. If you don't have plans to use it anytime soon, you could park it into an etf or other higher return (/higher risk) asset.
- Actionman77 on 21/08/2021 - 17:23
  
  Thanks Smitty…..no immediate plans that I can think think of……I already have a small parcel of ETFs I purchased a few years back (wish to hell I'd ploughed a heap more in at the time!), so they're certainly something I've been looking at.