Combining the security of a fixed rate home loan and the benefits of a variable loan, the Split Loan option allows you the freedom to choose how much money you assign to each loan type. Common split loan ratios are 50:50, 70:30 or 60:40 over a two-way fixed and variable rate. The key consideration generally comes down to the amount of risk you want to take on the cash rate going up or down.
- Competitive interest rates over a variety of fixed and variable loan types.
- Flexibility – you can choose which portion you would like to fix and which portion you would like to be on variable terms.
- You can choose loan options that suit your needs.
- Fixed rate portion offers rate and repayment security and peace of mind.
- The variable rate gives you repayment flexibility and an offset account
- Split loans are often ideal for property investors. Many keep their owner-occupier loan on a variable rate, while the investment property loan is kept to fixed terms in a bid to assist with the management of cash flow for the loan/property investment.
- By splitting your loans you limit the upside benefits in the event of interest rate reductions
- There are penalties if you wish to break a fixed rate
- You cannot refinance to another institution (potentially) during the fixed rate period
- Contact us to discuss your initial thoughts and requirements.
- Complete our finance application form covering the purpose for seeking credit and the amounts of credit sought
- We will then contact you to arrange an initial consultation, to agree the basic information required and the process for completing such
- Once that has been compiled we will review it and then provide a written strategy for you to consider.
- If you’d like to proceed, we will then work with you on a formal loan application process.