Sometimes all you need is a little variety. There are a number of home loan options available, which can be matched and paired with your needs in order to help you achieve the best possible mortgage situation.

However, it can be difficult to decide between selecting a fixed or a variable rate for your loan. The two offer different experiences that can change the way you approach your repayments and influence your financial situation.

There is an option for those interested in reaping the benefits of both worlds – a split home loan.

A split loan allows borrowers to take out a portion of their loan with a fixed rate, while the rest remains set with a variable rate, and all under one home loan product.

These are great for people who want to spread their interest rate risk, especially in the event of an escalating cash rate and rising rates for credit products. Furthermore, having the security of the fixed home loan allows for easy budgeting.

This type of loan also allows for the opposite scenario to occur. Having a variable rate home loan means you can take advantage of the lower interest rates that often come along with a reduced cash rate – something that has been happening over the last few months.

These splits are often done by ratios, with the most common being 60 per cent variable/40 per cent fixed rate or a straight 50/50 split. This customisation can help you to make a personally tailored mortgage package, which could put you in complete control of your financial situation.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.