Last week I talked about fixed rate loan vs variable rate loan. It can be difficult to choose which type of interest rate is better for you. In that video I briefly mentioned split home loans.
Split home loans are where your home loan is split into two parts, with one on a fixed interest rate and the other on a variable rate.
Under this type of home loan, the fixed rate portion provides you certainty in your repayments as your interest rate will remain fixed for the specified fixed period. Whereas the variable rate portion provides you greater flexibility and more perks.
You get the best of both worlds.
Why could a split home loan help? It could help you if you want security and stability in your repayment as well as you want to avail some home loan features like offset account for example.
We can help you structuring your home loan.
Based on your finances, we can work out what proportion you should fix and what to keep in variable.
It is not uncommon for borrowers to sit on the fence and unable to decide. Feel free to contact us and we can make the whole process easier for you.