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What is a split facility?

April 26, 2017facility Split

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What is a split facility?

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A. A split facility allows the borrower to split the overall mortgage into a number of sub-accounts; each of which can be different amounts and even different types of loans (eg one could be fixed for 2 years, another a line of credit and the third a regular variable term loan). This can be a great way to “hedge your bets” if you don’t know which way interest rates are going to go; and also a great way to divide your debts into personal (eg your home) and investment debts, to help you and your accountant keep track of what is deductible and non-deductible debts.