A split-rate loan involves dividing your mortgage into two parts – one with a fixed interest rate and the other with a variable interest rate. It’s akin to hedging your bets. This arrangement provides borrowers with protection against interest rate increases (via the fixed-rate portion) while also benefiting from potential rate decreases (through the variable-rate portion). Many banks offer the option to split your loan from the start, often without requiring separate loan applications. Selecting the appropriate type of loan depends on factors such as your individual circumstances, income potential, and long-term property goals. Consulting with a mortgage broker can assist in determining the optimal approach, potentially leading to cost savings in the process.