Fixed vs Variable › What is a split loan and should I use one?

What is a split loan and should I use one?

A split loan divides your mortgage into two parts, one fixed and one variable. You get repayment certainty on the fixed portion and flexibility, like an offset, on the variable portion. It is a common way to hedge the rate decision.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Splitting lets you stop trying to pick the perfect option. You fix a portion for budgeting comfort and keep a portion variable for an offset and extra repayments. If rates rise, the fixed part shields you; if they fall, the variable part benefits. The right split depends on how much certainty versus flexibility you want.

The key points

It divides the loan into fixed and variable parts.
You get certainty on one part, flexibility on the other.
It hedges the fix or float decision.
The split ratio reflects your priorities.

Free, no obligation

Not sure which rate suits you?

Answer a few quick questions and we can talk through fixed, variable, or a split across a panel of more than 70 lenders.

Check Your Options

A few quick questions, no obligation.

What is your goal?

Buy a home or investment property First home, next home, or adding to your portfolio Build a house or develop land New build, renovation, duplex, or subdivision project Lower my current repayments Better rate, release equity, or restructure existing debt Finance an established commercial property Business premises or commercial investment asset

Tell us a bit more about the plan

How do you earn your income?

Standard salary or wage Full-time, part-time, or casual employment (PAYG) Self-employed or business owner Sole trader, company director, or contractor

How is your credit score?

This helps us match you to the right lender from the start.

Healthy No issues that I am aware of A few small marks A couple of late payments, now caught up Not sure, or it is complicated We work with specialist lenders for these situations

Last step. Where should we send your options?

Your information is private and we will never share it.

First Name

Last Name

Email Address

Australian Mobile Number

By submitting, you agree to be contacted by one of our team of licensed mortgage brokers. No obligation. No spam.

You're all set.

We've received your details. One of our friendly brokers will reach out within 1 business day to help guide you through your options.

More fixed vs variable questions

Back to the full Fixed vs Variable guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.