Split loan 1-10 years

A Split Home Loan is loan structure offered by most lending institutions where one portion of your mortgage attracts a fixed interest rate for a set period of 1-10 years, and the other portion of the mortgage attracts a variable interest rate.

At the end of the fixed period, the fixed interest portion of the loan reverts to the current variable rate unless a new fixed period, at the then prevailing fixed interest rates, is negotiated with the lender.

Why Choose a Split Home Loan


It is important to reduce the risk of potential interest rate rises causing mortgage repayment pain, especially during the first few years in the life of a mortgage. Locking in a fixed rate on a significant portion of the total amount being borrowed for a set period, reduces exposure to rising interest rates, and makes budgeting easier.


A Split Home Loan allows lump sum payments to be made against the portion of the mortgage attracting a variable rate of interest. This flexibility allows a borrower to reduce total interest paid over the life of the loan and the length of the loan period.

There is generally no restriction to the way you split loan. It can be 50/50, 60/40, 80/20 etc. You are in control.

Our Split Home Loan calculator demonstrates how different split options could work for you.