What is split loan?
A split loan divides one mortgage into a fixed-rate portion and a variable-rate portion so you get certainty on part of the balance while keeping flexibility (offset, extra repayments) on the rest.
A split loan structures one home loan into two (or more) portions, each priced under a different product. The most common split is fixed + variable: e.g. on a $500,000 loan you fix $300,000 for 3 years at a sharp fixed rate and keep $200,000 variable with full offset.
The rationale is risk management. The fixed portion locks in certainty against rate rises on most of the balance; the variable portion preserves flexibility (unlimited extra repayments, full 100% offset, no break costs). It's a middle path between 'all-fixed' and 'all-variable'.
Splits don't require equal proportions — 60/40, 70/30, 50/50 are all common. The two portions sit under one loan account at the lender; you make one combined repayment that's split internally. Refinancing a split is more complex because break costs apply to the fixed portion if you exit before the fixed term ends.
split home loan · fixed and variable split
- Fixed-rate home loan — A fixed-rate loan locks the interest rate for a chosen term — typically 1, 2, 3 or 5 years — so repayments don't move wi…
- Variable-rate home loan — A variable-rate loan moves with the lender's pricing decisions and the RBA cash rate cycle — the rate (and your repaymen…
- Offset account — An offset account is a transaction account linked to your home loan whose balance reduces the loan amount on which inter…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.