Getting an ice-cream and asking for 2 scoops of your favourite flavours is like double dipping. Mmmmm
So how can you double dip and take advantage of two different products on your loan?
A split loan gives you the ability to split up loans into different types of products using the same security. Let’s say you borrowed a loan of 80% against a property that’s worth $500,000, so your loan amount would be $400k. It is possible for you to set up a split and it can either be a 50/50 split, a 30/70, or a 40/60 split, it’s completely up to you. But you can actually have part of your loan as a variable, and the other portion as a fix.
What this can do is, this can actually help you take advantage of some of the cheaper rates that currently come with a fixed rate, but still give you the ability to make additional repayments on your variable loan.
A split loan will give you certainty on the loan repayment of the fixed portion of your loan, and the variable portion will allow you to pay down your loan faster as it will allow you to make extra repayments on top of your minimum repayment amount, but the interest for this portion will fluctuate with the market.
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