What is a split loan and how does it work?

Not sure whether to go fixed or variable with your home loan rate? The answer could be a split loan. It can offer the perfect balance. 

The best of both worlds

Choosing a variable rate home loan may be an easy decision. You’ll benefit from any possible future rate cuts and have a number of loan features at your fingertips.

But there’s also a lot to love about fixed rate loans.

A fixed rate loan can bring certainty to your budget. That’s because the repayments won’t change for as long as your interest rate is fixed, no matter how market rates move. This makes loan repayments easier to plan for.

In this way, splitting your loan can let you enjoy the best of both worlds – the stability of a fixed rate and the potential for savings with the variable rate component.

Customise your split to suit your goals

We give you the freedom to select your fixed rate term or choose multiple splits, with a different fixed rate term for each split.

It’s a simple way to kick a few goals by using a home loan top up to pay for a holiday or school costs, and having a different fixed term for each.

Splitting can even help you get control of your finances. Fold higher interest debts into your home loan, and improve your cashflow with one repayment over a term that suits you.

Split your loan for an investment property

As a home owner you may be able to use your home equity to invest in a rental property or other worthwhile investment opportunities.

A split loan can be handy here too.

You may want to choose the fixed portion of your loan to make interest-only payments on the investment property while using principal plus interest payments on the variable rate portion to pay off your home sooner.

Be sure to check with your tax expert about how a rental property could work for you.

Our split loans are packed with money-saving features

Best of all, Easy Street’s split home loan doesn’t scrimp on loan features.

Our fixed rate loan comes with 100% offset, no limit on annual repayments, and redraw is available if you need to access extra payments.

So, when you combine our fixed rate loan with a variable rate, you won’t miss out on money-saving loan features.

It can make splitting a smart move.

We make it easy.

You can apply online or give us a call on 1300 13 14 65 to find out more about our split loans, and one of our Mortgage Specialists will be in touch.