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Split Home Loan Repayments Calculator

See your estimated repayments per week/fortnight/month

Split Home Loan Repayments Calculator

$

Loan One

$
% p.a.

Loan Two

$
% p.a.

Your estimated repayments
would be

--

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How to use our split home loan calculator

Here are the details you’ll need to enter about your home loan.

1

Loan amount

The total loan amount you’re borrowing from the bank, including both the fixed and variable portions.

2

Split loan amounts

The loan amounts of the fixed and variable portions. For example, $250,000 fixed and $300,000 variable.

3

Interest rates

The interest rates charged on the fixed and variable portions of the loan (e.g. 6.00% fixed and 6.49% variable).

4

Repayment types

Whether you’re making principal and interest or interest-only repayments. Most home loans have principal and interest repayments where you pay off the amount borrowed and the interest charged from the start.

5

Loan terms

The amount of years you’ll be paying off each portion of the total loan. Most new mortgages come with a 30-year loan term, with fixed rate durations generally ranging from 1-5 years.

After you’ve entered in these details, our calculator will give you an estimate of your split home loan repayments. You can choose to see weekly, fortnightly or monthly repayments.

Why split your home loan?

Splitting your home loan into fixed and variable parts is a way to hedge your bets. With this approach, you get the benefits of both types of loans. If interest rates rise, your fixed portion insulates you from higher repayments. However, if interest rates fall, you won’t feel the full benefit if you split.

  • With the fixed portion, your interest rate is locked in for a set period (usually one to five years). This protects you against rate increases and makes part of the loan predictable.
  • The variable portion of your loan lets you benefit from falling interest rates and access features like an offset account.

Most lenders allow you to choose how you split your loan. You can divide it equally based on your loan amount, or split it into percentages like 60/40 or 70/30, depending on what works best for you.

Is it better to have a split mortgage?

A split home loan can offer a balanced approach to managing your mortgage. But, whether it’s the right choice for you depends on your financial situation, risk tolerance and goals. Speak to a mortgage broker to see if a split loan aligns with your needs.

Split home loan pros and cons

Pros
    greenTickCircle
  • You get the stability of fixed rates and the flexibility of variable rates
  • greenTickCircle
  • The fixed portion of your loan ensures repayments are predictable
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  • The variable portion often includes features that can help reduce interest costs and allow extra repayments or redraws
  • greenTickCircle
  • You can tailor the split to suit your needs, such as an even 50/50 split or a 70/30 split to favour one type over the other
Cons
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  • In some cases, you may end up paying fees on two loans instead of just one
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  • If interest rates drop significantly, the fixed portion of your loan won’t benefit, potentially resulting in higher overall interest costs compared to a fully variable loan
  • redCrossCircle
  • The fixed portion might mean you aren’t able to negotiate lower rates on your loan
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  • If you decide to change or cancel the fixed portion before the end of its term, you may face break fees or penalties

Split loan repayments example

This table estimates how much you’ll pay on a split home loan of $400,000.

Interest rate

Fixed loan portion*

6.00%

Variable loan portion

6.49%

Fixed term

Fixed loan portion*

2 years

Variable loan portion

N/A

Estimated monthly repayments

Fixed loan portion*

$2,398

Variable loan portion

$2,526

Fixed loan portion*Variable loan portion

Interest rate

6.00%

6.49%

Fixed term

2 years

N/A

Estimated monthly repayments

$2,398

$2,526

This example is based on an owner-occupier home loan over 30 years with principal & interest repayments. Other fees and charges applied by lenders would also affect the repayment amount. *Once the fixed-rate term ends, the interest rate will change, impacting the total estimated monthly repayments.

Home loans guides & resources

What's the next step on your property journey? Our home loan guides will help you navigate the road ahead, whether you're buying, building or looking to save on an existing loan.

FAQs about split loan repayments

You can usually fix your rates for one to five years on the fixed part of a split loan, depending on your lender. If you expect rates to rise and want more stability, choosing a longer fixed term might be best. But, if you think rates could drop soon, a shorter fixed term might be best.

Most borrowers in Australia choose to lock in their rates for three years or less, according to the RBA.

After the fixed-rate period ends, the fixed part of your loan usually switches to the same variable rate as the other part of your loan. This means that the part of your loan that was fixed at a set interest rate will now move to a rate that can fluctuate with market conditions.

At this point, you can renegotiate your loan: split it again, switch to a fully variable rate, go all fixed, either with your current lender or a new one.

It depends on the lender’s terms, but most lenders won’t allow you to make at least some extra repayments on the fixed portion of your home loan. You’re normally free to make unlimited extra repayments on the variable portion.

Some lenders charge establishment or ongoing fees for split loans, so it’s important to check the fine print with your lender. In some cases, you might end up paying double the fees because you’re effectively applying for two separate loans. Many Australians use mortgage brokers who can help with identifying the fees and charges associated with a split home loan.

A split home loan might be suitable for borrowers who prefer the security of fixed rates for part of their loan, while also taking advantage of the features typically on offer with a variable rate loan. This type of mortgage may work best for people who want to manage risk but also benefit from falling interest rates.

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Assumptions:

  • The calculations do not account for changes in interest rates or other market conditions that may occur.
  • Results are approximations and may differ from actual payment schedules or amounts.
  • The calculator does not include all fees and charges that you may incur in relation to a financial product.

Limitation

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Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C)
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