Split Loan

A split loan is a combination of fixed and variable rate loans. This type of home loan is best for people who want to have a fixed rate, but also want to be able to take advantage of lower repayments in case interest rate falls. A split loan also works for those who want certainty in repayments for the first year of the loan term and then transfer to variable loan later.


  • Flexibility in redraw options.
  • Ability to plan for interest rate risk.
  • Ability to make lump sum repayments without penalty on the variable loan split.


  • Still vulnerable when interest rate rises.