How Can The Clients Split Their Loan?

A split home loan allows a homeowner to split their loan into multiple different accounts that incur varying loan rates. Before a potential homeowner agrees to a mortgage agreement with their mortgage broker, they should first inquire if including a split home loan feature in their agreement is acceptable. Additionally, existing homeowners can inquire with their mortgage broker about splitting their home loan at any time. 

There are a wide variety of advantages and disadvantages that come along with split home loans that a mortgage broker should be able to adequately explain to their clients. 

Advantages of a Split Home Loan

• Access to competitive interest rates
• Security against interest rate changes
• The ability to make unlimited additional mortgage repayments
• Access to competitive interest rates
• Some brokers may allow clients with split home loans access to mortgage offset accounts
• Potential access to various home loan features
• Clients are not restricted in how they decide to split their home loan

Disadvantages of a Split Home Loan

• Clients may be required to pay various fees or break costs 

If a client is interested in splitting a home loan, they should reach out to their current mortgage broker to gather more information and submit an application for a split home loan or take a look at a Split Loan Calculator to learn more.

Clients who approach their mortgage brokers with questions about lowering their interest rates and monthly repayments may also benefit from renegotiating, which can be an easier process than splitting a home loan.