Loans for 500k

[Frezzinghot]

Hi,

I am looking at rates at a 500k loan on a home & income property I have under contract and was wondering the best way in which to split the loans between 3 and 5 years rates.

My thoughts are to split them evenly over the 3, 4 & 5 year rates at $166k per term, current rates I have from ASB is

3 year 5.25%
4 Year 5.39%
5 year 5.39%

The reason I have for splitting them evenly is I don't want a large chunk coming off in 5 years should the rate be a lot higher than now. Have also managed to get a cash incentive of 4k (is this in line with other cash incentives)

Any advice is much appreciated.

FH

[Rosco]

Do you have other loans?

If so I'd look at your whole portfolio, and try to spread the whole thing. ie for example, if you only had another $500k that was all 3 years to go, then you might go some long term, some 4 and 5, but no more 3 as you already have lots.

Ross

[Frezzinghot]

Thanks Ross, had not thought about that, but makes perfect sense to consider when the other loans expire also, I have 2 other loans with various expiry dates so will have to look closely at these to see how I can adjust the terms for each.

Thanks
FH.