In today’s unpredictable interest rate environment, locking in the “perfect” home loan can feel impossible. Rates rise, rates fall — and every movement impacts your repayments. For many borrowers, a split loan offers a practical way to protect themselves while keeping flexibility.
What is a Split Loan?
A split loan divides your mortgage into two separate portions:
-
Fixed Rate Portion
-
Your interest rate and repayments are locked for a set term.
-
Provides certainty and protection against sudden rate hikes.
-
Makes budgeting easier, especially for households with tight cash flow.
-
-
Variable Rate Portion
-
Interest rates can move up or down with the market.
-
You can make extra repayments without penalty.
-
Access to features like redraw facilities and offset accounts.
-
Why Consider a Split Loan?
-
Stability: Fixed portion shields you from unexpected increases in rates.
-
Flexibility: Variable portion allows you to benefit if rates fall or if you want to pay off your loan faster.
-
Customisation: You can choose the percentage split that works for your situation — for example, 50/50, 70/30, or any other combination.
Is It Right for You?
A split loan works well for borrowers who want to reduce risk without missing out on potential savings. However, it’s important to consider:
-
The fixed term length and potential break fees if you end it early.
-
How much flexibility you need for extra repayments or accessing funds.
-
Your view on where interest rates may head in the coming years.
Before committing, speak with a qualified mortgage adviser who can assess your financial goals, lifestyle, and risk tolerance.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au