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Combination or Fixed Rate Loans

Could a Combination or Split Loan Solve Your Financing Problems?

Combination loans, also called split loans, allow for a percentage of a mortgage to remain on a variable rate while the remaining portion has a fixed rate over 1 to 5 years. This allows borrowers to retain the stability of a fixed rate while also benefiting from the more flexible variable rate. Borrowers can select any percentage split, such as 50:50 or 70:30.

The benefits of a split loan

Here are three reasons why many of our borrowers love split loans:

  • The fixed rate of a split loanprovides protection against rising interest ratesand gives the homeowner apredictable payment.
  • The variable portion allows forextra repayments without penalty—something borrowers don’t get with a fixed rate loan. This allows them to pay off their principal faster andsave even more money on interest.
  • For even more flexibility and control, some lenders allow aline of creditloan to be included in the combination. Line of credit loans allow borrowers to monitor what they borrow and creates arenewable source of funds to access.

The benefits of a split loan when refinancing and investing

If you need your loan to serve the dual purpose of generating funds for both refinance and investing, a split loan could be the perfect solution. With a split loan, you can choose a fixed rate mortgage for the portion of principal that refinances the current mortgage, thus securing a lower rate and lower payment. For the investment portion, you can select a variable rate line of credit which will allow for cash withdrawals, interest-only payments for a limited time and renewed availability of cash once the balance s paid off

Need to refinance a mortgage and want funds for investment purposes?

A split loan is the perfect facility; choose a fixed rate to pay out the current mortgage and a variable rate with a line of credit facility for the investment portion.


Rate and payment stability
Low, fixed-interest rate
Long-term control that allows you to sleep easy
Suits lower-income earners

Drawdown funds as you need them
Only pay interest on what you use
No early repayment fees or penalties
Suits investors and high-income earners

Contact us for a no-obligation quote on a combination loan today!