Hybrid Mortgage
A single mortgage split between fixed and variable portions — e.g., 50% fixed and 50% variable — blending rate-cut upside with fixed-rate protection.
A hybrid mortgage (also called a 'split mortgage') divides your mortgage balance between fixed-rate and variable-rate portions under one agreement. Common splits are 50/50, 70/30, or 25/75 depending on your view of rates. The fixed portion protects you from rising rates; the variable portion benefits from cuts. Each portion has its own rate, term, and renewal date, which can complicate administration. Hybrids are offered by a subset of Big 5 banks and monoline lenders. The tradeoff is complexity for partial hedging — many borrowers find pure fixed or pure variable simpler to manage.