Glossary

Glossary of terms and acronyms related to Australian banking, finance and investments.

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Combination Loan

A combination loan is a loan that switches between two schemes, usually from fixed to variable rate or vice versa. Also called a split loan, the combination loan allows you to enjoy the benefits of both types, such as the low rates of a variable loan and the security of a split loan. One of the most common strategies is to start off with a fixed rate loan, then move to a variable rate after a number of years. It is also possible to combine two variations of the same loan type.

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