This Split Home Loan Calculator is one of the most useful home loan calculators, and is used when people have, or are looking at taking out a Split Rate Home Loan.
A Split Rate Home Loan is where a portion of the home loan has a Fixed Rate, and the balance of the loan has a variable interest rate. In other words the Home Loan is split between a Fixed Interest Rate and a Variable Interest Rate.
Split Rate Home Loan
Many people in Australia have split rate home loans, which are useful when there is uncertainty in the home loan interest rate market. This Split Loan Calculator is a very powerful tool, yet so easy to use.
All you have to do is enter the starting home loan amount you are borrowing, the home loan term, the repayment frequency to start with.
Then enter the amount for the fixed portion of the loan, the fixed period, and the fixed interest rate. Lastly enter the variable interest rate.
The Split Home Loan Rate Calculator will show you the repayments on each portion of the home loan plus what the repayments will be after the fixed payment period ends. You will also see the total interest payable, and what the total interest payable would be if the whole home loan was variable rate.
Your financial advisor, or home loan lender will be a good place to get some professional advise as to what would be the best way to set up a Split Rate Home Loan would be for you, taking your own unique set of circumstances into account.
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With uncertain times, or when interest rates are expected to rise, it is a good idea to prepare for interest rate rises now, especially around Christmas, when we tend to give the credit cards a work out.