Fixed rate Split Rate Home Loans, sometimes referred to as Combination Rate Home Loans or blended loans, allow borrowers to split their home loan into partly fixed and variable portions. This provides borrowers with the flexibility of a variable mortgage product and added certainty of a fixed rate loan. Split & Combination Home Loans are a combination of up to 2 smaller, separate loan accounts together forming one home or investment loan. You can nominate a portion of your home or investment loan to be fixed and the remainder as a variable loan, just choose the proportion that works for you. With split rate home loans & combination rate home loans, the fixed portion of your home loan is protected from increases in interest rates for the fixed period, see Fixed Rate Home Loans. You can still make additional payments and benefit from 100% offset if available, on the variable portion of the loan, which may help you to pay that portion off faster.
How do Split Rate Home Loans & Combination Rate Home Loans work?
- You choose how much of the combination loan you want to split between fixed and variable
- The fixed portion gives you certainty over your repayments, protecting you from interest rate fluctuations
- The variable portion gives you access to a range of flexible features such as the ability to make extra repayments so you can pay off your home loan sooner, as well as redraw which lets you access overpaid funds to finance future goals
- Even better, add a 100% Offset Account to the variable portion