Split Home Loans

A Split Home Loan is one where you can choose to have your loan split into two specific accounts. Split loans may comprise of

  • Split between a Fixed and a Variable component (most common structure)
  • Split between two or more Variable Rate components
  • Split between two Fixed Rate components for different terms.

Pros and Cons of Split Loans

Advantages

  • Offers the ability to customise the home loan
  • Fixing a portion of the loan could provide interest rate protection in a rising market.
  • Specific features of fixed and variable apply to those components
  • Allows a focus on one split for potential earlier repayment through higher repayments
  • Potential to have interest only option on one of the splits

Disadvantages

  • Fixing a portion of the loan could provide interest rate protection in a rising market.
  • Specific features of fixed and variable apply to those components

Who should use a Split Loan structure ?

  1. Anyone who desires to Fix a loan but still make additional repayments to a variable component of the loan
  2. Borrowers who use a Guarantor may split the loan equivalent to the amount of the guarantee and focus on repayment of that portion for earlier Guarantor release.
  3. Borrowers who have consolidated debt and wish to keep a focus on the consolidation loan for faster repayment.

Contact our Credit Advisors for assistance!

Just call us on 1300 275 536

Customer Information Form

Download our Customer Information Form. This Form will take no more than 10 minutes to complete.

Please return completed forms by email to info@customers1st.com.au.

This will allow our consultants to perform a complete analysis of your borrowing capacity and provide appropriate advice for your personal circumstances.