Split rate home loans mean splitting your mortgage into different accounts that attract a different type of interest rate.
Split rate loans enable you to hedge your bets against interest rate fluctuations as well as providing a sense of security and flexibility.
Not all loans have a split facility and you can usually choose any amount of your loan, to be either a variable or fixed interest rate ie 60/40, 20/80 etc.
Some banks will even let you split the mortgage up to 4 times.
Also, the portion of the loan subject to variable rates, can also have an offset account attached to it.
Look for low or no set up fees and make sure there are no penalties for making additional repayments.
Most lenders do offer split loan facilities on investment loans and you need to consider if splitting the loan, will put your investment property in either positive or negative gearing.
Many existing loans can be split, so check with your lender to see if this is possible.
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