What is a Split Loan?

If you have been agonising over the decision between a fixed rate home loan and a variable rate home loan, your choice can be decided by choosing a split loan. A split loan allows you to allocate a portion of your loan amount to attract a variable interest rate and another portion to attract a fixed rate. This enables you to take advantage of the security of a fixed rate but the flexibility of a variable rate, as well as reduce the impact on your loan repayments if interest rates rise.