With Split Rate Home Loans you can have exactly that. A Split Rate Home Loan is one where you can choose to have a portion of the loan with a fixed interest rate, and another portion with a variable interest rate. What makes a Split Rate Home Loans attractive for first time and existing borrowers is:

  • the ability to customise the home loan
  • add as many features as required
  • many combinations – 50/50 split or 80% variable and 20% fixed (provided it meets lenders policy).

Advantages of a Split Rate Home Loan

  • Fixing portion of your loan can protect you against future interest rate rises.
  • Leaving part of your loan at a variable interest rate allows you to save money if interest rates fall.
  • You can have a fully featured home loan by combining different home loan products.

Why Would a Split Rate Loan not suit me ?

  •  A Split Rate loan, because of the many variables available, can have a complex fee structure.
  • Limited amount of extra repayments might apply to the fixed portion of the loan
  •  Flexibility to change lenders is reduced due to exit fees attached to the fixed component.

Split Combination Home Loans

  • Where there are a number of purposes for a loan, such as one loan for the home and another for the investment property, a Split Combination Loan might be best for you.
  • Investors can leverage their equity to utilise the best of a variety of Loan Products, using a Split Combination Home Loan.

Tips on How to Get the Most Out of Split Rate Home Loans

    • Decide on the rate and the amount to assign to a variable. For example, you may prefer Split Rate Home Loans on an even basis, with half at variable and the rest settled for a 3 year fixed rate term. With this setup, any changes in the interest rates will only affect half of your loan.
    • Make additional reimbursements as much as you can. This way, you can pay lower interest rates, and you can also shorten your mortgage term.
    • It is possible to choose Split Rate Home Loans more than once. But you should be cautious as this may cost you added fees. 

Contact our Credit Adviser for assistance!

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