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.
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 SPLIT | LINE OF CREDIT SPLIT |
|---|---|
| Rate and repayment security | Drawdown funds as you need them |
| Low fixed interest rate | Only pay interest on what you use |
| Sleep easy at night factor | No early repayment costs |
| Suit lower income earners | Suit investors and high income earners |
Contact us without obligation to find out more about combination loans.