Hi All I have a 500k loan on an investment property where I am paying P&I, on a Variable interest rate. Calling up the bank to reassess my situation, they are offering 2.5% Fixed for 2 years, or 3.3% Variable. Fixed option doesn't have an offset account, Variable does. I have 100k cash (that I prefer to have in low risk, so not stocks). The most cost effective choice seems to be to split the loan into 400k Fixed, 100k Variable. And dump the 100k cash into the variable's offset. Am I missing any considerations here? Especially as I want to buy a PPOR in 2 years, it seems like a good way to keep my interest payments low for now. I can use the 100k cash in the offset to go towards the PPOR, and then change the 100k Variable portion to Fixed as well.