Question 1:
We currently have 2 loans against our residential house property, one of which is a personal home loan and the other a business loan that is at a higher interest rate. My question is can we refinance both loans?

Yes you can and the costs to refinance are minimal. Depending on the Lending value of your residential home against the total loan amount.



Question 2:
I currently have a variable rate loan and am looking at refinancing my existing loan and also seeking an increase of $90,000.00. I am also considering fixing $300,000.00. Can you suggest if this is a good idea or not?

It is always an option to consider fixing part or all of your loan(s), however when considering this alternative, you should look at the following issues;
Can I repay increased amounts/bulk reductions during the course of the fixed rate period? Yes. Penalties could apply, should you wish to payout the fixed rate portion before the maturity date. Therefore, your short to long term goals are a consideration as to the term of the fixed rate. Also, the reason why you are considering fixing part/all of your loan is knowing that the repayments you are going to pay are considered acceptable irrespective of the variable rate (market rate) further decreasing or increasing during the course of your fixed rate period. Obviously should the variable rate increase during the course of your fixed rate period this would be to your advantage.


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