Split mortgages, also referred to as “hybrid mortgages” or “50/50 mortgages,” combine fixed and variable rate components within a fixed time period (usually around 5 years). A primary benefit of a split mortgage is that it allows you to have regular payments with the flexibility of a variable rate, which helps save you money in the end! The involved risks include potential rate spikes, increased amortization schedules, and penalties if you need to cash out of the mortgage. These potential risks could end up costing you a lot if you don’t do your research. To find out if a split mortgage is an appropriate option for your needs, contact the mortgage professionals at DLC. We can help assess your current risk portfolio and make sensible recommendations.