If you are unsure about whether it is better to have a fixed rate home loan or a standard variable rate home loan – you could consider a split loan. This gives you the option to take a part fixed rate and a part variable rate loan.
With this type of loan, you nominate how much of the loan you would like to fix and how much you would like to put on a variable rate.
The reason for this is simple: If interest rates increase, then the portion of the loan, which is fixed, will give you peace of mind, that portion will not go up. If interest rates go down, then you will feel at ease knowing that the variable portion of your loan will also go down. The Split Loan is a cautious way of borrowing.
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