Combination or Split Loans

Combination or Split Loans allow for a percentage of the loan to remain on a variable rate with the remaining portion of the loan on a 1 to 5 year fixed rate. The borrower can nominate the percentage split they want. For example 50:50 or 70:30.

Benefits of a split loan

  • The fixed rate provides protection against rising interest rates
  • The variable portion allows for extra repayments to be made without incurring the penalty fees which are normally payable when such payments are made with a fixed rate loan.
  • A line of credit facility can also be accommodated onto this type of loan, depending on the provider.

Need to refinance a mortgage and want funds for investment purposes?

A split loan is the perfect facility; choose a fixed rate to pay out the current mortgage and a variable rate with a line of credit facility for the investment portion.

FIXED RATE SPLITLINE OF CREDIT SPLIT
Rate and repayment securityDrawdown funds as you need them
Low fixed interest rateOnly pay interest on what you use
Sleep easy at night factorNo early repayment costs
Suit lower income earnersSuit investors and high income earners

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Contact us without obligation to find out more about combination loans.