Split Home Loan Australia: Part Fixed, Part Variable Explained
By the Mortgagefy Team · Published · Last reviewed
A split home loan divides your loan into a fixed part and a variable part. This guide explains how that works, what to ask about extra repayments and break costs, and when a split may or may not suit you.
- Fixed, variable and splitThe main differences at a glance
- How a split loan worksFixed, variable and what to ask
- Check your optionsA short chat, free and no obligation
Free, no obligation. Conditions apply. Eligibility, lending criteria, fees and charges apply and vary by lender. General information only, not credit advice.
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Who this guide is for
- Borrowers who want some certainty over repayments and some flexibility
- People unsure whether rates will rise or fall
- Refinancers whose fixed rate is ending and who want to keep part of it
- First home buyers comparing fixed, variable and split options
- Investors who want to manage interest rate risk
The real challenge
A fixed rate gives certainty but can limit extra repayments and may carry a break fee. A variable rate moves with the market but is often more flexible. A split loan lets you hold some of each, but it is not automatically cheaper and the rules differ between lenders.
The right split depends on your budget, your plans for the property and how much flexibility you want. A broker can help you compare how different lenders structure splits.
Fixed, variable and split compared
| Income type | What lenders commonly look at (varies) |
|---|---|
| Fixed rate | Repayments are known for the fixed period, which is typically 1 to 5 years. A break fee may apply if you sell, switch or repay early, and extra repayments are often limited. |
| Variable rate | The rate can move up or down. Many variable loans allow extra repayments, and some offer features such as an offset account. |
| Split loan | One part is fixed and the other variable, so you get some certainty and some flexibility. You choose how the loan is divided, and conditions can differ for each part. |
| When the fixed part ends | It usually reverts to a variable rate unless you refix. Ask what happens at the end of the fixed period and what the revert rate will be. |
General information only. Requirements vary by lender and change over time. Confirm current requirements with your chosen provider.
How a split home loan works
ASIC MoneySmart describes a split home loan as one loan divided into two parts: one with a fixed rate and one with a variable rate. The fixed part gives more certainty over repayments, and the variable part gives flexibility to make extra repayments. Sources: ASIC MoneySmart.
Questions worth asking any lender include: how much of the loan will be fixed and how much variable, whether you can make extra repayments on either part, whether an offset account can be linked to either part, what fees apply, and what happens to the fixed part when the fixed period ends.
A break fee may be charged on the fixed part if you switch loans, sell the property or pay the loan off early. The fee can be high, and it generally depends on how interest rates have moved since you fixed. You can model repayments with our home loan calculators.
What to compare between lenders
- The split ratio options you can choose (for example, how much can be fixed)
- Extra repayment rules and any limits on the fixed part
- Whether an offset account is available and which part it links to
- Break fee rules and how they are calculated
- What the loan reverts to when the fixed period ends
Ways to decide on a split
- Work out how much repayment certainty you actually need
- Check your budget at higher rates, not only today's rate
- Ask whether you can change the split later and what it costs
- Speak to a broker about how different lenders structure splits
You can model repayments and borrowing capacity with our home loan calculators before you speak to a broker.
How Mortgagefy helps
- Compare split loan structures across lenders
- Explain extra repayment, offset and break fee rules in plain language
- Model how different splits may affect your repayments
- Help you apply with the right documents for your situation
There is no obligation. We are a Sydney mortgage broker, and we will tell you plainly where a lender's policy is unlikely to suit your situation.
How it works
- 1
Free chat
A short call about how you are paid, your deposit and your goals.
- 2
Compare options
We look at which lender policies may suit how your income is structured.
- 3
Prepare your documents
We help you gather the documents your situation needs.
- 4
Apply and settle
We help you through application, approval and settlement.
Check your options in 2 minutes
Free, no obligation. Answer a few questions and a broker will follow up.
Your questions
Get your free Sydney split loan assessment
Tell us what you want from your loan, and we will explain how lenders structure splits. No obligation.
More home loan guides
Refinance
Review your current loan.
When Your Fixed Rate Expires
What to do as a fixed rate ends.
Fixed Rate Break Costs
How break costs may work.
Offset Accounts
How an offset account works.
Principal and Interest vs Interest Only
Compare repayment types.
Home Loan Calculators
Estimate borrowing capacity and repayments.
This information is general in nature and is not personal financial, credit or tax advice. Policies vary by lender and change frequently. Confirm current requirements with your chosen provider and seek professional advice. Information checked 4 October 2026. Mortgagefy is an authorised credit representative under Australian Credit Licence 348324.