We've recently moved into a home which we'd been renting out, and accordingly have changed our loan type from investor to owner occupier. Some numbers:
Property purchase price (6 months ago): $1m
Loan amount: $780k
Investor loan rate: 6.04
Monthly repayment on investor loan: $4650
Owner occupier rate: 5.89
Monthly repayment on owner occupier loan: $4770
Does this seem correct? Why would the repayment amount be higher for a lower rate? I've asked our broker and she's said it's correct but offered no explanation.
I know with a lower rate and higher repayment we'll be paying off the principal more quickly, but we have an offset and so I'd prefer to just have that money parked in offset in case of emergency.
Anyone able to offer some clarification? I'm not a finance guy but I'm decent with numbers, but also aware that I've got to be missing something here.