We are in the process of reviewing our home loan and I'm interested to know how people set theirs up.
In the past we have been fixed and currently on variable.
I am thinking about splitting our loan to fixed/variable but not sure on the ratio to do so.
So how do you have your home loan set up and why:
And any other options you may have!
- fixed with interest only/variable with extra payments
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30-04-2014 15:23 #1
Home Loan Set-Ups & Why
30-04-2014 15:28 #2
Totally following this post. I have no idea. I do like the idea of fixing...
30-04-2014 15:50 #3
I like fixed (if it's a good rate!) with an offset account.
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30-04-2014 15:53 #4
Ours is on variable for the house we live in, but we pay a set amount every month (so the ratio of principle/interest changes based on interest rates). Our investment property is fixed and interest only. We did this because we wanted to have one of the loans at a stable rate as we would have been in trouble if rates went up too much on both properties. Rates were a fair bit higher then and we were managing our risk. The investment comes off fixed this time next year and we'll see what rates are like & whether we want to purchase more property before we decide whether to fix again or not.
If we were to review our homeloan now I'd only fix the rate if there was some indication that rates were going to start rising significantly.
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30-04-2014 19:02 #5
Bump for the night time crowd
30-04-2014 19:17 #6
Find a good bank manager, they will advise on the best strategy for your circumstances. We have about 3/4 fixed and 1/4 variable. We have an offset account and all our income goes to this account. We have redraw on both accounts which is great for saving and saving interest on the accounts. We review this every 4 yrs.
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30-04-2014 19:25 #7
Variable on home and investments. I don't like to try and predict. It's worked out fine for us so far.
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30-04-2014 20:43 #8
It's a hard one to decide. We are leaning towards fixing a percentage and going on variable for the remaining percentage. So we aren't totally stuck if the rates do rise or if they stay the same then it's not much of a change, I like that we would still have our offset on the variable, and the redraw.
I'm glad we were on variable while the interest rates went down, and our mortgage repayments are on a reasonable amount each week. I just worry if they do rise drastically and then it puts us under pressure financially, I suppose that's why I'm leaning toward fixed and variable.
30-04-2014 21:02 #9
Ours is 3/4 fixed & 1/4 variable... We have an offset account set up to our variable loan.
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French Pear (01-05-2014)
30-04-2014 21:12 #10
variable all the way. I think fixed is good if you cannot afford a rate increase but in general the banks know more than we do about whether rates will increase or decrease and so I'm pretty sure you are unlikely to save money with a fixed loan
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