Moving OS - What to do with Loan?

Hi guys need some help re loan.

Moving OS soon for about 5 years and anticipate a rather big drop to earnings as I'm moving to a rural area to be with wife's family over there.

Anyway, currently have a Breakfree Fixed package with ANZ (1 year finishing in Jan 2018) 4.39 something rate and wondering if I should break it now and look for a new package?

Picture below illustrates the current setup (although GF or IP2 and 3 don't exist)


Critical is to get a good rate with Offset facilities (currently ANZ charge me $10 per month x2 for offsets (I have a split loan).

Things I am considering:

• Currently house rented for 530 p\w and covering the mortgage (just)
• Was going to build a granny flat to increase income but as I'll be a non-resident for tax purposes come mid 2018 wondering if that's the best use of capitol (need an accountant for this one i guess)?
• I had split the loan with intentions to buy more IP's but the plans to move OS put a stop to that around 8 months ago as I wanted a buffer in case things went "tits up" trying to get work OS.
• Valuation was done 2 years ago when re-financing with ANZ. Property is in Merrylands and I'm concerned of the following if I was to get re-valed now:
  • APRA changes effecting serviceability
  • Likelihood of re-val not being as good
• Need to keep repayments as low as possible for the next 5 years as likely to be earning less than now (currently on $150k but missus is stay at home mum so that figure is total income for family, not including rent from property)

Can anyone offer advice on best way to plug all these factors into some kind of metric to help with this decision? (or recommend a stats \ modelling guru who I should approach for their services??

Thanks
Maadha

 

pretty straight forward. Just go PI with an offset. might be best to break the fixed rate.

 

Not answering you're direct question but some things to think about.

I'm assuming you're working on IO repayments at the moment by those numbers.
What have you factored into your scenario if/when you revert to PI repayments in Jan if you stay as is? You may need a full app to get IO again if you lose it.
What IR have you worked out your worst case scenario on that you can still survive?
Have you discussed with an accountant here and OS, how tax is going to work in each respective country so you don't end up with a bill from either side?

Side note - if you're paying the package fee $395py you get one offset within the package
So you could be paying $10pm that you shouldn't be

 

What software did you use to create the diagram?