What Is the Best Way for the Clients to Benefit from Fixed-Rate Combination Split Loans?

Fixed-rate combination split loans are also called split home loans and allow homeowners to split their existing home loan agreements into various parts. The split loan parts are then connected to a home loan account and specified as either fixed-interest rates or variable-interest rates. Generally, there are no restrictions on how a homeowner decides to split their home loan, however, most mortgage brokers will limit how many times a homeowner splits their home loan to two. 

The best way for homeowners to benefit from fixed-rate combination split loans is by speaking with their current mortgage broker and using a free online Split Loan Calculator to learn more about how this process can benefit them individually. 

Fixed-rate combination split loans can allow homeowners to face a wide variety of benefits, including the following examples:

• Access to security against rising interest rates
• Access to home loan adjustability
• Access to flexible home loan features
• Homeowners can make unlimited additional mortgage repayments without incurring penalties, including fees
• Access to mortgage offset accounts

A home loan with a fixed-interest rate refers to an interest rate that does not fluctuate over the life of the loan and stays the same. Fixed-interest rates have the potential of benefitting homeowners in the following ways:

• Access to mortgage offset accounts
• The ability to make unlimited additional mortgage repayments without incurring penalties
• The option to redraw funds that have been used to make additional mortgage repayments in order to fund a wide variety of expenses

A home loan with a variable interest rate refers to a non-fixed interest rate that increases and decreases throughout the life of the home loan. Variable-interest rates can allow a homeowner to save money on mortgage repayments during low-interest rate periods.