Knowing which home loan will work best for you can be difficult, especially when you are deciding to go with fixed or variable, why not choose both with a split loan?

Use our split home loan calculator to estimate the repayment for your fixed and variable home loan portions. Change the loan amount, loan term, the fixed portion and variable portion of the loan.

Please note that the calculations provided are not a quote or pre-approval. Your actual interest rate and repayment amount will depend on various factors, including all information that is provided by you in the assessment of your application.

 

What is a split home loan?

A split home loan involves dividing your loan into multiple parts, allowing you to allocate a specific portion of the loan to have a fixed rate loan while the remaining portion can have a variable rate loan. A split home loan offers the best of both worlds when it comes to features: the security of fixed rates and the flexibility of variable rates. With this type of loan, you have the freedom to divide your loan details. Adjust the slider on the split loan calculator to visualise your repayment portions.

Example of a split rate home loan

If you choose to split your loan evenly, you can opt for a 50:50 split, half of your loan will be fixed and the other half will be variable. If you are getting a total loan amount of $600,000, this split will essentially result in two separate loans: one with a fixed interest rate on a balance of $300,000 and the other portion with a variable interest rate on $300,000 balance. You can split the portions up how you'd like, if you'd prefer a 60:40 or 70:30 split, most banks and credit unions will allow this on eligible home loans.

Why split your home loan?

Fixed and variable rate home loans offer distinct advantages and disadvantages. For a full comparison of the advantages and disadvantages of fixed and variable loans, see our fixed vs variable loans comparison. By opting for a split loan you can balance out the advantages and disadvantages of both types of loans. With a split rate home loan, the fixed portion of your loan is shielded against rising interest rates, though you miss out on potential savings if the rate decreases. The variable portion gives you more flexibility and access to potential features such as extra repayments, redraw facility and offset accounts. However, for the variable portion of a split rate home loan an interest rate increase would lead to higher repayments. Whereas an interest rate decrease will reduce your repayments on the variable portion of the loan.

Should I split my home loan?

It depends on your personal circumstances and what home loan features you are seeking. You should speak with a lending specialist to help you determine what best suits you, enquire online to talk with a Northern Inland Lending Specialist about your options. Please seek professional advice when making an important financial decision. The information in this article is general in nature and does not constitute as personal advice.