Line of Split Rate Home Loan

If you need the security of a fixed rate home loan but want the flexibility of a variable rate loan, then a split loan may be the answer.

A split or combination loan brings together the benefits of variable and fixed interest rates into a single home loan. What makes this type of loan attractive for first time and existing borrowers is the ability to customise the loan and add as many features as required. The loan can be split many ways: 60% variable, 40% fixed or 50/50 splits are most common.

Split loans are useful in times of economic uncertainty, particularly when interest rates are rising. By splitting a loan, borrowers can hedge against the risk of higher rates whilst still keeping part of their loan at the lower variable rate.