I just placed my first deposit on my next home. Exciting times however now I must decide on my loan structure.
CBA has offered me the following. I am taking an 80% loan of $348,000. Income is $72,000
Standard Variable - $348,000
2.63% - $1320.00 per month
Fixed 1 year @ 2.19% - $1320.00 per month
Fixed 2 & 3 years @ 2.14% - $1311.00 per month
Fixed 4 years @ 1.99% - $1285.00
Fixed 5 years @ 2.99%
I'm not sure what the best strategy is. I've just started reading up about the cashback deals being offered and that sounds like a good strategy. Obviously 1.99% 4 years is pretty damn good but the economy is still in uncertain times. Maybe it's best to fix for 2 years and see how rates are then? Personally I am not overly interested in an offset account as I have a 3% westpac lifesaver account. I would also be more inclined to invest in equities now that i've locked down a safer asset that will now account for the majority of my net worth.
Any advice appreciated