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  • Profile photo of rickgm83rickgm83
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    @rickgm83
    Join Date: 2008
    Post Count: 6
    November 7, 2012 - 11:14 pm

    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.

    Profile photo of rickgm83rickgm83
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    @rickgm83
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    October 3, 2012 - 6:23 am

    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.

    Profile photo of rickgm83rickgm83
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    @rickgm83
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    October 3, 2012 - 5:14 am

    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 against it?

    I'm not 100% sure on how it works and if this would be a better idea as I can see it would free up more income.

    Profile photo of rickgm83rickgm83
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    @rickgm83
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    October 3, 2012 - 4:15 am

    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?

    Profile photo of rickgm83rickgm83
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    @rickgm83
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    October 3, 2012 - 3:34 am

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

    Valuation $315k

    Owe $218k

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