Partially fixed (split rate) home loans – The Happy Finance Company

Partially fixed (split rate) home loans

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Discover the Best of Both Worlds with Split Rate Home Loans

When it comes to securing your dream home, the right home loan can be your secret weapon. Today, we're excited to introduce you to the versatility and balance of Split Rate Home Loans – an option that combines the stability of fixed rates with the flexibility of variable rates, giving you the best of both financial worlds.

What is a Split Rate Home Loan?

A Split Rate Home Loan is like having a diverse investment portfolio in the world of homeownership. This type of loan allows you to divide your loan into two portions: one with a fixed interest rate and one with a variable interest rate. It's like being able to dance to different tunes at the same party.

Balance and Flexibility

The beauty of a split rate home loan lies in its ability to offer:

Rate Stability: The fixed rate portion of your loan provides predictability and helps you budget with confidence.
Variable Rate Freedom: The variable rate portion lets you enjoy features like redraw facilities and offset accounts, allowing you to adapt to changing financial needs.

Benefits to Smile About

Risk Management: By splitting your loan, you're hedging your bets. If interest rates rise, the fixed portion keeps your repayments steady, while the variable portion allows you to benefit from potential rate decreases.

Financial Flexibility: You can tailor your loan to suit your specific needs. Need more stability for one part of your life and more flexibility for another? A split rate loan can provide that balance.

Things to keep in mind

While split rate home loans offer a balanced approach, here are some considerations:

Interest Rate Types: Make sure you understand the terms and conditions of both the fixed and variable portions of your loan.
Fees and Features: Be aware of any additional fees or restrictions that may apply to either portion of your loan.

Finding your perfect blend

Choosing the right home loan is like finding the perfect blend of coffee – it should cater to your taste and preferences. Your decision will depend on your unique financial goals and lifestyle. We are here to provide expert guidance, ensuring you make the best choice for your situation.

Is a Fixed Rate Home Loan the right mix for you, or are you leaning toward another flavour? Here are a few more options to explore:

Fixed Rate Home Loans: For those who crave stability and want to lock in a predictable rate.

Variable Rate Home Loans: If you love adaptability and want the freedom to make extra repayments.

Maximising your financial freedom

Interested in how to reduce the amount of interest you pay on your home loan? Here are some practical strategies to make the most of your split rate home loan:

Payment Frequency: Change your repayments to weekly or fortnightly to reduce the overall interest you pay.
Offset Accounts: Consider using an offset account for the variable portion of your loan to decrease your interest payments.
Extra Repayments: Take advantage of the flexibility of the variable portion by making additional repayments.
Review Your Split: Regularly assess whether the fixed and variable portions of your loan still align with your financial goals.
Compare and Save: Always shop around and compare lenders to secure the best deal. Our online home loan platform conveniently places all major banks and lenders at your fingertips.

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