Split Home Loans

Compare home loans that let you split your mortgage into fixed and variable portions.

Can't decide between a fixed or variable interest rate for your mortgage? Many home loans allow you to split your rate into multiple fixed and variable portions. You can compare some of these loans in the table below and read more about how split loan facilities work.

Split home loan comparison

Rates last updated September 17th, 2019
$
Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
2.98%
4.25%
$0
$375 p.a.
95%
Get a very low fixed interest rate for two years plus package discounts. Available with a 5% deposit.
3.15%
3.17%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.27%
3.87%
$0
$395 p.a.
80%
Lock in a competitive rate for owner occupiers for two years. Comes with a 100% offset account.
3.09%
3.09%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.39%
3.39%
$0
$0 p.a.
95%
This flexible, basic home loan offers a very low rate and you only need a 5% deposit.
3.24%
4.26%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.33%
4.37%
$0
$0 p.a.
80%
Pay no application fees and access a fee-free redraw facility with this fixed rate loan.
3.63%
3.63%
$0
$0 p.a.
80%
This is a competitive interest-only rate product that's also low in fees.
3.09%
4.39%
$595
$0 p.a.
95%
Borrow up to 95% LVR of the value of the property you're buying and pay no ongoing fees.
2.99%
3.51%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 3 years fixed interest terms and free access to redraw facility online.
3.42%
4.50%
$0
$0 p.a.
80%
Get a low fixed rate and pay no application or ongoing fees.
3.64%
3.96%
$0
$299 p.a.
80%
Investors can enjoy a 100% offset account, a redraw facility and flexible repayments.
3.32%
3.71%
$0
$395 p.a.
90%
New borrowers or refinancers can get a discounted rate with this package loan.

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Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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Note: The loans in the table below are a selection of fixed rate and variable rate loans. It's best to speak with the lender about your preferred combination.

What is a split rate home loan?

A home loan split means dividing portions of your loan principal (the money you have borrowed) into different home loan accounts with different interest rate types. You could split your loan 50/50 between fixed and variable rates, or you could split it 80/20 and so on. Some lenders allow you to split multiple times.

Split rate home loans allow you to enjoy some benefits of both fixed and variable rates. If your lender cuts rates, your variable portion will drop. But if rates rise, the fixed portion of your mortgage split will still be at the lower rate (because fixed rates don't change).

Here's an example.

Catherine goes for a split loan

Split home loans case study 2 Catherine is discussing her split loan options with her lender. She needs to borrow $300,000 and wants both repayment certainty but the ability to make additional repayments and put funds into a 100% offset account.

Catherine decides to split her loan 50/50, putting $150,000 into a 3 year fixed rate account and $150,000 into a variable rate that has an offset account. She also puts $50,000 of her savings into the offset account, reducing her variable loan principal to $100,000.

Fixed versus variable rates: what's the difference?

How does a split facility work?

The process for splitting a loan is relatively simple, although you can do very complicated splits with the aid of a split calculator or a broker.

  1. Find a loan with a split facility. Not all mortgages have the option to split your loan. Check if yours does and if it doesn't, ask your lender if they can make an exception or consider refinancing to a loan that allows splits.
  2. Decide your split portions. You can split any way you like depending on how you wish to structure your loan.
  3. Make repayments. Once your loan is split you make repayments into each portion as normal. If your variable portion allows for extra repayments you could pay off extra in order to pay off your loan faster.
  4. Monitor your rates. The fixed rate portion won't change during the fixed period. But your variable portion can change at any time, so be sure to monitor the rate. If it gets too high you might want to refinance. Just keep in mind that there are breaking costs associated with ending a fixed rate, which could be costly.

Split loan calculator

You can use our split loan calculator to estimate the costs and benefits of splitting your rate. When you start using the split loan calculator, don't forget to pay extra attention to the information you're adding. Each number you enter correlates with the final outcome. So if you still don't have the exact numbers, find them out. If you can't do that, use the closest figures available.

Say you type in $260,000 paying monthly. Automatically the calculator will draw the fixed repayment, which in this case would be $1,100, the variable repayment $761, the total monthly repayment $1,861 and the total interest payable $432,750. When you're done calculating the split, you should have a good idea of how a split loan can help you.

Why should I split my rate?

  • Offers certainty and flexibility. A split rate loan can give you the certainty that a portion of your loan won't be impacted should interest rates rise, but the flexibility to benefit from any rate reductions and some of the features commonly offered on variable rate loans.
  • Repayment certainty. A fixed rate locks in a rate for an agreed period of time. During this fixed term, your rate, and therefore your repayments, won't change at all. This can give borrowers who are trying to keep to a strict budget more security, and can minimise the impact of rate increases.
  • Offset accounts and extra repayments. If the variable portion of your loan allows for extra repayments or has an offset account you can use extra cash to reduce your home loan debt faster.
  • More options. A split facility gives you more options with your mortgage, allowing you to fine tune your splits for maximum effect.

How can a broker help?

Mortgage brokers are home loan experts and they 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. A broker's service is usually free because they receive a commission from the lender, not the borrower.

Get in touch with a broker using the form below

Aussie Home Loans Logo

Enter your details below to receive an obligation-free quote from an Aussie mortgage broker today

By submitting this form, you agree to the Finder Privacy and Cookies Policy and Terms of Use

Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. © 2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2018 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the finder.com.au Privacy and Cookies Policy, Terms of Use, Disclaimer & Privacy Policy and the Aussie privacy policy.

Aussie is both a lender and a mortgage broker, and offers a range of services.

  • FREE Suburb and Property Report with every appointment.
  • Access 3,000+ loans from over 20 lenders.
  • Get expert help with your loan application, including paperwork and eligibility.

Aussie Home Loans Lender Logos

The Adviser’s number 1 placed mortgage broker 5 years running (2013-2017)

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4 Responses

  1. Default Gravatar
    DianeSeptember 8, 2017

    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

    • Default Gravatar
      JonathanSeptember 8, 2017

      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

  2. Default Gravatar
    DianeSeptember 8, 2017

    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.

    • Default Gravatar
      JonathanSeptember 8, 2017

      Hello Diane,

      Thank you for your inquiry.

      Self-employed or sole traders usually target low-doc home loans as this requires little or different paperwork requirements than the traditional home loans. On this type of loan, you can self-certify your income by using your business statements and declarations.

      You can check low doc home loans on this page as your guide. Alternatively, you may speak with a mortgage broker to help you with customized solutions by submitting an enquiry through “Speak to a Mortgage Broker” tab.

      Hope this helps.

      Cheers,
      Jonathan

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