Split Home Loans

A Split loan allows you to have a portion of your home loan with a fixed interest rate and the remaining portion with a variable interest rate.

You have the option of selecting the percentage you would like fixed and the percentage you would like variable, as long as the minimum fixed amount is covered, as per the individual loan requirements.

Advantages

Ability to have some security whilst also having the flexibility to pay off some of your home loan sooner (the variable portion)
Access to the features that only come with variable interest rate home loans, ie line of credit etc
Most home loans allow you to change your split percentages a set number of times for free before they start charging, offering you extra flexibility.

Disadvantages

You may incur additional fees if you make extra repayments or pay off the fixed portion of your home loan sooner
You won't receive the full benefit if interest rates reduce
You may incur additional fees for changing the split ratios more than the allowed number of times