Split Loan

What a split loan means

A split loan divides the home loan into separate portions. A common arrangement puts one portion on a fixed rate and another on a variable rate. The total debt is the sum of those portions; splitting it does not reduce the amount owed.

ASIC Moneysmart calls the fixed-and-variable arrangement a partially-fixed rate. Product structures vary. CommBank's explanation, for example, also describes multiple portions of the same loan type. That is a product explanation, not a lender recommendation.

Worked example: calculate each portion first

Consider a hypothetical $600,000 balance divided into $360,000 fixed at 5.5% and $240,000 variable at 6%. Both portions have 25 years remaining and monthly principal-and-interest repayments. These are invented rates, not current offers.

Portion	Balance	Annual rate	Estimated monthly repayment
Fixed	$360,000	5.5%	$2,210.71
Variable	$240,000	6%	$1,546.32
Combined	$600,000	Two separate rates	About $3,757.04

The combined amount is rounded after adding unrounded estimates, so adding the displayed cents differs by one cent. The calculation uses monthly interest of annual rate ÷ 12, 300 payments and no fees, offset, redraw or extra repayments. It holds each entered rate constant for that calculation; it does not predict future rates or extend the actual fixed period.

Use the Mortgage Repayment Calculator once for each portion, then add the monthly estimates. Keep each portion's own remaining term. Do not use the two-year fixed period as the repayment term of a loan with 25 years left.

Change the rate only where it applies

If the variable rate in this example were 6.5% at the same balance and remaining term, its estimate would be $1,620.50 a month. Combined with the unchanged fixed portion, the total would be about $3,831.21, up $74.17 using unrounded amounts. Applying the increase to all $600,000 would misrepresent this scenario.

A later rate change also needs the balances and terms at that later date. Once the fixed period ends, review its revert rate or any new arrangement. This simple comparison cannot establish the cheapest structure over the life of the debt.

Check each portion's conditions

Confirm fees, repayment dates, extra-payment limits and which account any offset serves. Do not subtract the same offset balance from both portions. A feature on the variable portion does not establish that the fixed portion has it too. Early changes to a fixed loan may incur break costs; obtain a lender estimate before relying on a refinancing budget.

Read the Fixed Rate explanation and refinancing checklist for the fixed-period and switching questions. The example does not recommend a split percentage or assess borrowing capacity.

Sources and review date

• ASIC Moneysmart: Choosing a home loan, page updated 29 July 2026, checked 16 September 2026.
• CommBank: Split home loan, checked 16 September 2026. Used only to illustrate terminology; no rates or product recommendations are taken from this page.
• Repayment figures are original monthly amortisation examples, not lender quotes. Actual daily interest, timing, rounding and fees may differ.

General information only, not financial, tax, legal or credit advice, a loan quote, approval or recommendation. Confirm product conditions with the lender and seek licensed advice for personal circumstances.

Last updated: 16 September 2026.