In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Split loan
A split loan is when you divide your home loan into 2 or more parts. This way you can fix an amount of the loan for a certain period without any changes for extra security and another part can be a variable loan which may change over time.
Having a fixed portion of your home loan means you have regular and unchanging repayments; this can be for 1-5 years and provides assurance during uncertain times and interest rate rises.
Having a variable rate means the interest rate can fluctuate based on the market conditions and can be beneficial if the rates go down, plus they offer additional features like offset accounts, redraw and additional repayments without penalty.
Knowing which home loan is best for you can be difficult, especially when deciding between a fixed interest rate and a variable interest rate.
Depending on your circumstances, you may be able to get the best of both worlds by splitting your home loan. You can split your loan at any time, whether you've just settled or if your circumstances change during the loan's term.
When the market is exceptionally volatile, such as during economic uncertainty, split home loans are often the best option. You decrease the impact of interest rate fluctuations on your home loan because only a portion of it is affected, and you preserve the opportunity to take advantage of rate reductions on the component of your loan that has a variable rate.
Learn MoreWith a split loan, you may be benefiting from both fixed and variable rates while reducing your risks. When your fixed rate period expires, you have the option of renewing it or reverting to the variable rate that is offered at the moment.
Learn MoreThere are no restrictions on how you split your home loan, whether it's 50/50, 70/30 or 60/40, although most lenders only allow two splits.
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