The Benefits Of Combination Home Loans
For many - if not most - buying property would not be possible without securing a mortgage.
And if you are new to the borrowing world, the abundance of options for lenders, home loans and financial products can be intimidating.
However, if you are able to determine specific features you would like to have on your mortgage, suitable options become more apparent.
For example, if you would like a flexible home loan that allows for different interest options, you may wish to secure a combination or split home loan.
This kind of mortgage splits the total amount you are borrowing between loan products, most often a fixed and variable interest rate home loan.
The fixed interest rate portion gives you the security of stable rates and repayment levels, while the standard variable interest rate portion allows you to take advantage of loan features such as additional repayments and redraw.
In conditions of rising interest rate levels, combination home loans can offer a significant advantage to borrowers.
A chat with your mortgage broker would shine light on how a split loan may benefit you personally.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.