Has anyone ever beaten the banks going fixed?

From my understanding if you can fix your interest rate at 5% for the next 3 years (given the current variable rates)  the banks economists are predicting RBA rates will fall further over the next 3 years.

Bit more clearer now, i think i was just trying to over complicate things.

I would have a better tax advantage if i stayed in my current house as it has the lesser debt but i want to move unfortunately.

I think how Jamie and the others have explained is the only option.

Thanks guys.

Ok thanks,
This example was keeping both propertys/ loans seperate but might look into seperating the refinanced $50k aswell.

The other option I was thinking is having the seperate loans for each house but using the first house as collateral on the second.
Wouldn't this mean the first loan stays at $218k but it has a $50k collateral written…[Read more]

So if the loan on the first property that will now be rented is $268k ($218k + $50k for purchase of second property)

I can only claim interest paid calculated on $218k?

Is there a better way to structure the loans? Use first house as security against the second (PPOR) and keep my original first loan at $218k?

I've had a valuation done and a lender has calculated the equity.

Valuation $315k

Owe $218k