Split Loan Calculator
Get the best of both worlds – opt for a split loan incorporating fixed and variable rate loan portions. Use our split loan calculator to find the perfect balance.
In a fluctuating property market, choosing between the certainty of a fixed rate and the flexibility of a variable rate can be a tough call. A split loan allows you to do both, dividing your mortgage into two or more parts to manage risk while keeping your options open.
Use our Split Loan Calculator to experiment with different ratios—like 50/50, 70/30, or 80/20—and see exactly how your monthly repayments and total interest change.
How Does a Split Home Loan Work?
A split loan effectively creates two separate accounts under one mortgage. You decide what portion of your debt is protected from interest rate hikes and what portion stays flexible.
The Two Parts of Your Split:
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The Fixed Portion: You lock in an interest rate for a set term (usually 1–5 years). Your repayments for this part stay exactly the same, providing budgeting peace of mind.
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The Variable Portion: This part follows the market. While it can go up, it also allows you to benefit from interest rate drops and gives you access to features like unlimited extra repayments and redraw facilities.
Why Consider Splitting Your Loan?
For many Westgate clients, especially those building with Summit Homes Group, a split loan is a strategic way to manage a new construction project.
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Hedge Against Rate Rises: If you’re worried about rates climbing, fixing a larger portion (e.g., 70%) shields most of your debt.
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Access Your Savings: By keeping a portion variable, you can link an Offset Account. Every dollar in that account reduces the interest you pay on the variable slice of your loan.
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Pay Your Loan Faster: Most fixed loans cap your extra repayments. With a split loan, you can channel all your spare cash into the variable side to crush your debt sooner.
Frequently Asked Questions
Q. Can I change my split ratio later?
A. Yes, but it is easiest to do when your fixed term expires. Changing a split mid-term may involve “break costs” on the fixed portion. Our brokers can help you calculate if the switch is worth it.
Q. Do I have to pay two sets of fees?
A. Most package home loans allow you to split your loan into multiple parts for one single annual fee. We’ll help you find a lender that doesn’t double up on your costs.
Q. Is a split loan available for construction loans?
A. Absolutely. In fact, splitting a construction loan can be very effective if you want to fix the land portion while keeping the construction drawdowns variable.
Get Expert Advice on Your Split
A calculator is a great starting point, but the right split depends on your career, your family plans, and your risk appetite.
At Westgate Home Loans, we don’t just get you a good rate, we give you a structure designed for WA’s unique market. Let’s sit down and find the ratio that helps you sleep better at night.
