Would it be better to make interest only payments and place the balance of the monthly repayment into something like insurance bonds?

Q.

We have an investment property in the wife's name as she is the principal income earner. We are due to come off a quite favourable fixed interest rate in October this year leaving us owing about $400,000. We have the means to again fix the interest and pay principal and interest, and pay off the loan in about 10 years. Would it be better to make interest only payments and place the balance of the monthly repayment into something like insurance bonds in my name and then use these funds to pay the loan out in 10 years?

Your best strategy depends on your ages. For example if you are 45 or over, the best strategy by far is to keep the loan on an interest only basis and salary sacrifice to the maximum into super. If you are much younger, I prefer the insurance bonds strategy.