Home Loan Options for Adelaide Investors and Families: Split Rate Home Loans
Split rate home loans are a great option for those looking for the best of both worlds in their mortgage solution.
A split rate mortgage is one part fixed rate home loan, and one part variable rate home loan.
In other words, it is ‘split‘.
The ratio, or the split, is largely decided by you, so you can weight your mortgage towards a more fixed option or you can opt for a mostly variable rate option. AAA Mortgage Solutions can help you to decide the best split for your situation.
A fully fixed rate mortgage means that your interest rate is locked in for a term of one to five years, and you can expect total predictability from your payments during that time.
A variable rate home loan is sensitive to official cash rates, so are subject to change on a regular basis. The benefit of variable loans is that your interest rate will likely drop when the cash rate does, but it does mean that your interest can increase also.Book a FREE appointment with a professional mortgage broker now!
With a split rate, you will be able to benefit from the best of both options.
The fixed portion of your loan will give you a certain level of stability that is immune to cash rate changes, while the variable portion may lead to savings from cash rate decreases.
Another benefit is that you may be able to pay off the variable loan ahead of time without additional fees or charges, which most lenders will not let you do for fully fixed rate loans.
Approval for a split rate loan is calculated in the same way as other loan products, and the two portions will be assessed together as a single product by your lender.
For documentation purposes, the two portions will be treated separately.
If you need help deciding if a split rate mortgage is the best option for you, give AAA Mortgage Solutions a call on 1300 555 888.