Split home loans
A split home loan lets you fix part and stay flexible on the rest.
Instead of betting your whole loan on rates going one way, you put part on a fixed rate for certainty and keep part variable for flexibility. We help you decide whether a split fits, and in what proportions.
Book a Free Strategy Session15 to 30 minutes · no obligation · 30+ lenders
How a split works
One loan, divided into a fixed part and a variable part.
A split home loan is a single loan you divide into two portions. One portion sits on a fixed rate, so those repayments stay put for the fixed term. The other stays variable, moving with the market and keeping the features you'd want, like an offset account and extra repayments. You choose how much goes into each.
Certainty for your budget
The portion you fix has a set rate for the fixed term, often one to five years, so its repayments don't move even if variable rates rise. That protects part of your loan from increases and makes budgeting easier. The trade-off: lenders usually cap how much extra you can repay on the fixed part, and breaking it early can cost you. Our fixed rate home loans page covers how the fixed side works on its own.
Flexibility and an offset
The variable portion moves with the market, so it falls when rates fall and rises when they rise. It usually keeps the flexible features people value: an offset account, extra repayments, and redraw. Money in an offset works against this portion, not the fixed one. Our variable rate home loans page has the full picture on variable.
You pick the mix. A 50/50 split is common, but you can weight it however suits you, more fixed for certainty or more variable for flexibility. The right proportion depends on your situation, not a rule of thumb.
Is a split right for you?
A split isn't for everyone. Here's who it tends to suit.
There's no universal answer. It comes down to how much certainty you want, how you'd use an offset and extra repayments, and how likely you are to sell or refinance during the fixed term.
A split may not be your fit if
- You're likely to sell or refinance during the fixed term
- You want one rate and nothing extra to manage
- You want every dollar working in an offset
- You're confident which way rates are heading
- You'd rather commit the whole loan one way and stick with it
A split can make sense if
- You want some repayment certainty but also an offset and extra repayments
- You genuinely can't call which way rates will move
- You've got savings to park in offset while still locking part of your rate
- A rate rise would stretch you, but you don't want to lose all flexibility
- You're planning to stay put through the fixed term
Read the fine print
The trade-offs worth knowing before you split.
A split softens the fix-or-float decision, but it doesn't remove the fine print. Four things to weigh:
The fixed part can cost to exit
If you repay the fixed portion early, refinance, or sell during the fixed term, the lender can charge a break cost. It depends on how wholesale rates have moved since you fixed, so it can't be pinned down up front and can run into real money. It applies to the fixed part only, not the variable one.
Limited overpayments on the fixed part
Most lenders cap how much extra you can pay off the fixed portion each year during the fixed term. Go over the cap and you may pay a fee. If getting ahead on your loan matters to you, that's a reason to weight more of it variable.
Your offset works on one side
An offset account reduces interest on the variable portion only. The fixed portion keeps charging its fixed rate regardless of what's sitting in offset. The more you fix, the less of your loan your savings can offset.
The fixed part ends, then reverts
When the fixed term finishes, that portion usually rolls onto the lender's standard variable rate, which is often higher than a rate you'd negotiate fresh. It's a moment to review, refix, or refinance rather than let it drift. We flag these dates so they don't slip past. See refinancing for what a review can involve.
Where we come in
A bank offers its own split. We work out whether a split suits you at all.
The right structure isn't just fixed versus variable, it's how much to fix, which lender's fixed terms and break rules are reasonable, and whether the variable side keeps the offset and flexibility you need. We compare that across 30+ lenders and match the structure to your plans, not to a product we're pushing.
Good to know
Honest about break costs
We show the exit costs up front
Before you fix a cent, we walk through what breaking the fixed part could mean if your plans change, so it's a decision you make with eyes open, not a surprise later.
A balance, not a shortcut
A split is a trade-off
You give up some of the upside of going fully variable and some of the certainty of going fully fixed. That's the point of it. We make sure the trade lands where it helps you, not just where it's easy.
In your corner
Free to you, and on your side
We're paid by lenders for introducing loans. Under the Best Interests Duty we're legally bound to recommend what's right for you, not what pays us most.
Common questions
Split home loans, answered.
- What is a split home loan?
- It's a single home loan divided into two portions: one on a fixed rate and one on a variable rate. You make one set of repayments, but part of your loan is locked for the fixed term while the rest moves with the market. It's sometimes called a split rate loan or a part-fixed, part-variable loan.
- Why do people split their home loan?
- Mostly to avoid an all-or-nothing bet on interest rates. Fixing everything gives certainty but locks you out of flexibility and any rate falls. Leaving everything variable keeps the flexibility but exposes you to every rise. A split lets you take some of each, which suits people who genuinely can't call where rates are heading.
- Is a split loan a good idea?
- It can be, if you want some repayment certainty without giving up an offset and extra repayments, or if you're not sure which way rates will move. It's less useful if you're likely to sell or refinance soon, since break costs can apply to the fixed part. There's no one answer, which is why we model it against your actual plans.
- Can I choose how to split my loan, like 50/50?
- Usually yes. A 50/50 split is common, but most lenders let you weight it however you like, more fixed for certainty or more variable for flexibility, subject to their minimums. The right proportion depends on your situation, not a fixed rule.
- Do break costs apply to a split home loan?
- They can apply to the fixed portion if you repay it early, refinance, or sell during the fixed term. The amount depends on how wholesale rates have moved since you fixed, so it isn't set in advance. The variable portion has no break cost. We factor this in before you commit.
- Can I have an offset account on a split loan?
- Usually, but it offsets the variable portion only. Money in your offset reduces the interest on the variable part, while the fixed part keeps charging its fixed rate. If offsetting a large balance matters to you, that's a reason to keep more of the loan variable.
- Does a split home loan cost more in fees?
- It can, depending on the lender. Because a split is run as two portions, some lenders charge setup or ongoing fees on each, and an offset account can carry its own fee. Others waive these under a packaged loan. It's worth checking before you split, and it's part of what we weigh across lenders.
Book a Free Strategy Session to see if a split fits.
A licensed broker tells you whether a split stacks up for your plans, and how to set it. Nothing to prepare, no obligation.
15 to 30 minutes · no obligation · 30+ lenders