Quote Originally Posted by SBQ View Post
With interest rates on Term Deposits so low, why do you want to lock up $100K of cash for 2 years? Gone are the days where you could get 9% with cash and it's not very likely we will see even 5% in the next 10 years.

I had over $1M in cash term deposit 3 years ago that I had to break (yes you lose most of the interest) to buy a house that wifey wont at an auction. It was sold under GV and while hind sight is 20/20, it certainly did a lot better than money in the bank. Not saying future house prices would repeat the same gains but there is a lot to be said about "cash is king". It is king if you're presented with an opportunity.
In theory I am receiving for the 100000 in the bank the 2.55% that I would be paying for the mortgage, total money is an offset. If I take it out to do something else with it I would then be paying off a mortgage. So have to weigh up the benefits of just paying back capital or paying back interest and capital and doing some other investing.