Split Loans

Splitting your loan can be an effective way to cover yourself against interest rate movements. You divide your loan into two portions - part fixed and part variable. The variable part of you loan will move when the market does, but the rate on the fixed portion of your mortgage remains static.

Most institutions require a minimum dollar amount in each split portion and some charge per split so you should check with your mortgage broker about all costs beforehand.

Split Loans are sometimes called "combination loans".