Split loan calculator

The split loan calculator aims to help you decide whether to opt for a fixed rate home loan, a variable rate home loan, or a mix of both. It gives an estimate of different repayment amounts and interest payable over the life of the loan.

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Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
NO ONGOING FEES

Budget Home Loan (Principal and Interest) (LVR < 80%)

NO ONGOING FEES
VariableMore details
AN EASY ONLINE APPLICATION
  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION
VariableMore details
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

UNLIMITED EXTRA REPAYMENTS

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of January 25, 2022.


Taking on a home loan is a big financial commitment. Having the borrowing power to take out a home loan and being able to make loan repayments for the entire loan term are both big financial responsibilities.

Many new homeowners might not know they have the freedom to structure their home loan however it suits their repayment goals and financial situation. One way of doing so is by splitting your home loan into two portions, one with a fixed interest rate and the other with a variable interest rate.

There are a few reasons this can be helpful. Having a fixed interest rate secured can save you from an interest rate hike, which could make affording your loan repayments uncomfortable. But at the same time, if interest rates were to fall, you can reap this benefit with the variable side of things.

Interest rate changes can seem like a double-edged sword, with risks involved on either side of the fence. The reality is that there are cost-saving benefits and drawbacks to both fixed-rate and variable rate home loans, so it’s possible that mixing it up by splitting your home loan could minimise the riskier parts of the equation.

What is a split home loan?

A split home loan isn’t technically a loan, it’s an interest rate structure where one portion of the home loan is fixed and the other portion is variable.

The split doesn’t need to be straight down the middle. You can choose to split your mortgage 50% fixed and 50% variable, or even 60% fixed and 40% variable. The way you structure it is up to you.

There are a few important aspects of a split home loan that should be considered before sealing the deal.

The flexibility of a variable interest rate and the security of a fixed interest rate means you might need to strike the right balance between these two sides of the same coin. In essence, it’s important to consider how splitting your home loan is going to affect the total cost of the loan. Considerable costs could include how much your monthly repayments will be, how much interest you can expect to pay, plus whether any other restrictions will be imposed on the loan (like the ability to make extra repayments or lump sum payments in the future).

Your Mortgage’s Split Loan Calculator is a great tool for people that want to get an idea of how a split home loan will work for them.

Using the split loan calculator

The interest rate you’re charged will significantly influence how much you end up paying back on your home loan. Having a lower interest rate on your mortgage can end up saving you thousands of dollars in the long run.

Using Your Mortgage’s Split Loan Calculator can be helpful when deciding how you want to split a home loan, including whether you want to lean more towards a fixed rate, a variable rate, or neither.

You will need to have the following information handy to use the Split Loan Calculator.

  • The loan amount
  • The loan term
  • Your repayment frequency
  • The fixed portion of the loan
  • The fixed term
  • The fixed-rate
  • The variable rate

To give you an idea of what this might look like, let’s look at an example of an $800,000 mortgage.

For simplicity, let’s split the $800,000 straight down the middle into two $400,000 portions. The fixed portion will have an interest rate of 3.9% p.a. for one year, with the remainder to be set at 5.22% p.a. The total loan term will be 30 years and repayments will be made monthly.

According to the calculator, the combined fixed and variable repayments would be $4,088.08, with the total amount of interest coming in at $778,316.07. After the fixed-rate period ends, monthly repayments increase to $4,394.42 for the rest of the loan term.

If the entire loan was based on the variable interest rate, the total amount of interest paid would reach $784,999.45, meaning splitting the loan would save $6,683.38 over the entire loan.

If in this same example, the fixed-rate period was five years instead of one year, you would save $31,866.40 in interest.

Understanding the fixed period

It’s important to understand that despite these benefits, having a fixed interest rate on a portion of your home loan means if interest rates drop, or if there are other incentives offered under variable rates that suit your financial needs, you won’t be able to tap into these.

With a fixed home loan, you can’t use an offset account to save on interest on this portion of your loan. You might also get charged a break fee if you pay off your loan early, and if you choose to switch lenders during the fixed-rate period, you can also be penalised.

Using a variable interest rate on your home loan means you can typically make unlimited extra repayments, but fixed rates usually restrict your contributions to your standard monthly repayments. This can impact how quickly you can pay off your mortgage, as well as how much interest you end up paying.

It’s also important to understand that there fees and charges can apply differently to different loan types. This could include upfront fees, as well as ongoing fees, that are attached to each home loan. Understanding these costs is an important consideration when wanting to make the decision that suits your needs best.

Frequently Asked Questions

Splitting your home loan allows you to benefit from a variable and a fixed rate home loan, whilst minimising the risks involved in doing so.

Having a portion of the home loan secured in a fixed rate means there will be a level of security and predictability in your repayment schedule, and any rate hikes will not impact this rate. On the other hand, the portion of your mortgage that has a variable rate means you can remain somewhat flexible, and if the standard variable rate dips you can take advantage and cut costs.

Essentially, if the interest rate rises, you won’t be as harshly affected. At the same time, if the interest rate falls, you won’t be kicking yourself for missing out.

It will all ultimately come down to the numbers when deciding whether a split home loan is right for you. Ideally, you want to know how much you’ll be saving in interest if you split it, and whether a fixed or variable interest rate is going to be more favourable.

The calculator is a useful starting point, but it’s advised that borrowers speak to a qualified and professional mortgage broker or financial adviser that can give expert advice on what option will be most beneficial.

If you decide you want to split your mortgage, a professional can advise you on what portion you want to have a fixed rate and what portion to have a variable rate. It’s important to understand the benefits, but also the limitations of both loan types.