All Topics / Finance / Finance – Interest rates

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  • Profile photo of shanshanshanshan
    Participant
    @shanshan
    Join Date: 2007
    Post Count: 27
    November 4, 2007 - 9:11 am

    Hi,

    I recently bought a property to live in, I am now going to move overseas and use the property as an investment. The finance I initially obtained was a Line of credit which allowed my wages and the balance of my everyday savings to go directly against the loan. The interest rate is variable, as they say they cannot offer a fixed rate under a line of credit.

    With the interest rates continually rising and the fact that I'm moving overseas I am thinking of fixing the loan. Is this a wise choice?

    I will transfer payments monthly to offset the loan.

    Any advice on this would be great

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 4, 2007 - 9:52 am

    You generally cannot get 100% offset accounts on fixed loans, but can set up a savings account and have the interest direct debited.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 5, 2007 - 7:22 pm

    Terry is correct about his comment about fixed rate loans and offset accounts.

    In saying this many of the mainstream lenders will offer this on their 1 year rates so could e well worth for peace iof mind.

    Richard Taylor | Australia's leading private lender

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