Split variable/fixed loans

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FALCON
Participant
@falcon
Join Date: 2003
Post Count: 20
October 22, 2003 - 7:50 am
with looming interest rate increases i like many have been debating whether or not to fix my mortgage.
problem is i dont want to loose the flexibility to redraw or pay in extra or have a offset account so i was wondering about split loans namely with the ANZ as far as i can see this gives me the best of both worlds,security and fexibility
but is there any down sides to spliting a loan?
thanks in advance
Stuart Wemyss
Member
@stuart-wemyss
Join Date: 2003
Post Count: 598
October 22, 2003 - 7:56 am
Not really – splitting the loan gives you the best of both worlds.
There is a lender (Heritage Building Society) – they allow unlimited extra repayments on their fixed loans so this might be an option for you. http://www.heritageonline.com.au
Cheers
Stu
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
October 22, 2003 - 10:31 am
Hi Falcon,
Stuart has given you the straight forward answer. It depends how you look at it. Hedging your bet, or cancelling the other out. How might this affect the flexibility of your loan if fixed?
ANZ are offering 10 year fixed at a bit over 7%. What does that tell you? Slow growth as dictated by the govt. via the Reserve Bank.
I’m no expert, but I’m sticking with market rates.
Regards, Phil
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 22, 2003 - 12:27 pm
Further to Stuart’s post about Heritage. they also offer unlimited redraws on fixed rates-one of the only lenders to do so.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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