Split Rate Home Loan
What is a Split Rate Home Loan?
A split rate home loan offers enormous flexibility by enabling you to split your home loan into two parts, and borrow one part on a variable interest rate and a second part on a fixed interest rate.
By splitting your home loan you gain all the flexibility of variable rates whilst also enjoying the security of a fixed rate, plus the variable rate also provides a range of features designed to help repay your home loan faster, such as extra repayments and redraw facilities.
The choice of how you want to split your home loan is pretty much in your hands, with a 50/50 split being the most common approach. The decision on how much to apportion to each part of your split rate home loan is largely dependent on how much risk you are comfortable with relative to the propensity for up or down movements of the cash rate.