Spreading your interest rate risk
You can choose any combination of fixed, floating and flexible home loan to suit your needs.  In doing so, you can spread your interest rate risk and benefit from greater flexibility. 

• If you’re locked into a long fixed interest rate period and rates go down, you can’t take advantage of them.  If you have some of your loan on a flexible or floating interest rate home loan, you could benefit from lower rates.
• On the other hand, if your entire loan is on a flexible or floating interest rate home loan and rates go up, you have no protection.  If you have some on a fixed interest period, that portion is protected from interest rate rises.  

Flexibility
By combining different types of home loans you can enjoy the benefits of each type.

If you have a portion of your loan on a fixed interest rate and a portion on a floating interest rate you benefit from both the certainty of regular repayments on the fixed portion, and the flexibility to make lump sum repayments on the floating portion.

If you have a portion of your loan on a fixed interest rate and a portion on a flexible home loan you benefit from:

• The certainty of regular repayments on the fixed amount
• The flexibility to make lump sum repayments on the flexible portion
• The ability to redraw up to your loan limit at any time, for any reason
• The ability to reduce your overall interest costs.

Weighing it all up

Check our home loan summary table to see at a glance the main features of each type of home loan.  Then talk to us.  We can help you decide what’s best for your individual situation.

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