How Many Times Can The Clients Split Their Home Loan?

A split home loan refers to a type of home loan that allows homeowners to divide their existing loan into multiple accounts and classify the split parts with either variable or fixed interest rates. Depending on the individual mortgage broker, homeowners are generally not limited to how they split their home loan. However, most mortgage brokers will limit their clients to splitting their home loans a maximum of two ways. 

The best way for a homeowner to gather additional information regarding splitting their existing home loan is by reaching out to their existing broker to inquire if they are eligible to split and take advantage of a free online Split Loan Calculator. 

Split home loans can result in a wide variety of benefits, including the following examples:

• Access to competitive interest rates
• Making unlimited additional mortgage repayments without facing any penalties, including fees
• Home loan adjustability
• Access to security against interest rate changes
• Mortgage offset accounts
• Access to flexible home loan features

When a homeowner decides to split their existing home loan, splitting the loan into two accounts that have been classified with variable-interest rates and fixed-interest rates is a popular choice. 

Variable-interest rates refer to a type of interest that fluctuates throughout the life of the home loan and can allow homeowners to pay decreased mortgage repayments during low-interest periods.

Fixed-interest rates are a type of interest that does not fluctuate throughout the life of the home loan and can allow a homeowner to make unlimited additional mortgage repayments without penalties, benefit from a mortgage offset account, and redraw the funds that have been allocated to additional mortgage repayments and use them to fund a wide variety of expenses.