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Marcus I.
Marcus I.
Emu Plains, NSW

We have a loan of $420,000 and want to borrow about $50,000 to pay off credit cards and do some repairs around the house… house worth $800,000. The loan is with Westpac, rate 4.19% and we would like some advice on what the best rates would be if we fixed 50% of the loan for 3 years?

7 years ago


Hi Marcus,

Fixing 3 Year’s is a good strategy to give you peace-of-mind and still leave a good portion of your Mortgage variable to engage debt reduction strategy. We can get as low as 3.65% on variable and about 3.96% 3yrs fixed. Make sure you understand the comparison rates, limitations, fees and charges and learn good strategy to get the most out of your loan structures.

John J Maxwell
Mortgage & Finance Consultant
Cocalex Holistic Mortgage & Finance Consulting

Hello Marcus,
Whilst interest rate is an important criteria of borrowing, learning strategies to repay your loan more quickly is what will really save you money.
For example, if you could repay your loan 3 years faster, calculate the amount you would save by multiplying the monthly instalment by 36. If you currently pay $2,500 per month, the savings over 3 years would be $90,000.
This is what I teach my clients.
A number of lenders have rates below 4% for both variable rate loans and fixed rate loans.
Some of these lenders even offer 100% offsets with their fixed rate loans.
Contact me, but only after contacting Westpac and getting their best offer.

Hi Marcus,
I also agree with John and Stephen, there are definitely lenders that will beat 4.19%.
Using a budget tool such as on moneysmart.gov.au you can work out how much you could pay off your loan in a three year period. I would then keep that amount variable with an offset account and fix the rest.
I recently have had clients fix $450,000 and leave $140,000 variable. They were able to get 3.74% variable and 3.79% fixed for 3 years.
All rates are subject to LVR, income type, loan size, credit record and many other policy factors.
I would suggest you sit with a broker and get a full assessment so that they can offer you the most suitable combinations of product, features, fees and rates.
Best of luck

Hi Marcus,

How does 3.79% Variable and 3.89% 3 year fixed rate sound? Happy to provide more info if interested. Please contact me through my profile.



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