Most home loans have a fixed or variable interest rate. But with a split rate home loan you can divide your loan principal into 2 (or more) accounts, one with a fixed rate, one with a variable rate.
The split doesn't have to be 50/50 either. You could split an $800,000 home loan into a $500,000 fixed rate account and a $300,000 variable rate account.
Splitting offers access to benefits of both rate types. If rates rise, the fixed portion of your mortgage split will still be at the lower rate. Variable rate loans often allow you to make extra repayments or put savings into an offset account.
Compare split rate home loans now
Catherine is discussing her split loan options with her lender. She needs to borrow $600,000. Catherine wants to:
Catherine decides to split her loan 50/50, putting $300,000 into a 3-year fixed rate account and $300,000 into a variable rate with an offset account. She puts $50,000 of her savings into the offset account.
You can use our split loan calculator to estimate the costs and benefits of splitting your rate.
If you don't have the exact numbers, use estimates.
Fixed versus variable rates: What's the difference?
A mortgage broker can help you design a mortgage split that works for you. This can be very helpful because calculating these splits and understanding the benefits can be confusing for the average borrower.
Once you’ve entered your details, an Aussie broker will be in touch to start supporting you on your home loan journey.
An expert leader in mortgage brokering
If you're looking for a standing desk for the home office, the Omnidesk Ascent is our #1 choice for 2023.
It's time to sort out your NBN plan for the new year.
Invest in an index fund instead of actively trading stocks and you not only save on time and fees, you could be earning more in returns too.
SPONSORED: Upgrade your internet before the end of 2023 and get ahead on your life admin! We take a look at some of the benefits of a faster internet connection.
Young Australians cite overspending as the main reason for not reaching their financial goals.
What you need to know about investing in Shein from Australia.
Your guide to currency exchange in Brisbane, including how to get the best exchange rate.
Addressing speculation that interest rates might fall in late-2024, ANZ CEO Shayne Elliott said he thought it was too optimistic.
Sign up for our FREE 8-week course to get on the property ladder.
Get a home loan with a low deposit.
Pay less for your home loan with a super-low interest rate.
Save on your investment loan with these hot offers.
Hi there,
Just wondering if you have a split loan and want to refinance the variable portion of the loan can that be done? If the fixed portion is with the old bank.
Hi Andi,
With this situation, it’s probably best to speak with a mortgage broker to check your options for your specific circumstances.
All the best,
Rebecca
Continuing, there might not be enough collateral to make up the 80% that we need to refinance as the interest loan runs out and ends in 5 months and as I said there might not enough , have you got any suggestions, we could rent the investment house as it stands empty, we just didn’t have to , I guess, Diane
Hello Diane,
Thank you for providing these additional details.
If you’re unable to come up with 80%, your nearest option is to use the equity available in your family home to borrow up to 100%. You can check about line of credit equity loans and the list of lenders available.
Alternatively, if you’re uncomfortable with tapping your home equity, you may proceed with refinancing deals that offer low-deposit home loans. You can use the calculator located at the top of the comparison table to get an estimate of your repayments.
Hope this helps.
Cheers,
Jonathan
We have 2 houses ,one that we live in paid $ 364,000 in 2009 and the other an investment house,paid $364.000, almost 5 years ago. Also, we have interest loan only, it expires in 5 months, there has been a down turn and both house together are valued at $370,000. We have a business, Bank said they don’t chattels for loans, help.
Hello Diane,
Thanks for reaching out to Finder.
Lenders have different criteria when it comes to properties that can be accepted as security for a home loan. The general rule is the easier a property is to sell and the higher the demand for that particular type of property, the better the chances of a lender accepting it as loan security.
You may consider getting a low doc home loan. These can be useful for business owners. Once you have selected a particular lender, you may have to directly get in touch with them to discuss the eligibility of your property as security. When you are ready, you may then click on the “Enquire now” button. If you submit your details via the form on the page, a mortgage broker will be in touch to discuss the different options available and provide you with a quote.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
Hope this helps.
Cheers,
Jonathan