What is the benefit of a Split Loan?
A. The Variable and Fixed Rate Option (also known as a ‘Split Loan’) allows borrowers to take out a variable interest rate loan and a fixed interest rate loan (or any combination thereof). It gives customers the chance to reduce the impact of interest rate fluctuations on their budget. The fixed interest rate portion gives the customer the security of knowing their rate will not change over the fixed period; and the standard variable/discounted interest rate portion gives the customer the flexibility to make lump sum and higher than required repayments thereby reducing their loan balance. Q. Do I receive one loan statement or two? A. Every six months you receive separate statements for the fixed and variable portions of the Split-Rate Loan. Q. With a Mortgage Interest Saver Account, what is the offset on a Split-Rate Loan? A. You gain 100% offset on the variable rate portion of the loan, and partial offset on the fixed rate portion.
