Split Home Loans

Split loans enable you to split your loan they are flexible and enable you to have separate accounts for any purpose.

You can Split between Fixed and variable loans with this type of loan, you nominate how much of your home loan you would like to be secured with a fixed interest rate and how much of your home loan (the remaining amount) you would like to put on a variable rate

You can also  distinguish between tax effective and not tax effective debts (e.g. Personal or investment loans).

Pros:

  Having part of your loan at a fixed interest rate protects you against interest rate rises.
  Additional payments are allowed on the variable portion of the loan.
  Maximise your return on your tax effective borrowings.

Cons:

  You may be penalised for making higher repayments on the fixed portion.
  You may be penalised if you pay off your loan before the due date on the fixed portion.
  You may be charged set-up fees, account fees and discharge fees on both the fixed portion and the variable portion.