Split home loan

What is a split loan?

A split home loan allows you to split your home loan into two portions: one with a fixed rate and one with a variable rate.

Pros	Cons
Yes Your fixed portion would be protected if interest rates rose. Yes You have the flexibility to make unlimited additional payments on the variable part of your loan. Yes Potential access to offset accounts or redraw on variable rate loans, depending on your bank.	❌ If interest rates go up, your payments on your variable portion will too. ❌ You'll miss out on any interest rate drops for the fixed part of your loan. ❌ You may encounter extra fees charged on both sides, depending on the loan.

Pros

Cons

Yes Your fixed portion would be protected if interest rates rose.

Yes You have the flexibility to make unlimited additional payments on the variable part of your loan.

Yes Potential access to offset accounts or redraw on variable rate loans, depending on your bank.

❌ If interest rates go up, your payments on your variable portion will too.

❌ You'll miss out on any interest rate drops for the fixed part of your loan.

❌ You may encounter extra fees charged on both sides, depending on the loan.