“A split loan allows you to hedge your bets. You simply decide how much certainty you need and structure the loan portions to match that need.”
A split home loan divides your mortgage into two portions: one on a fixed rate, one on a variable rate. You choose the split. Common structures are 50/50, 60/40, or 70/30 — but any division is possible.
What you get from the fixed portion
The fixed portion gives you a known repayment on that slice of the loan, unaffected by further rate rises. This is the certainty component. If rates rise further in June or August, your fixed repayment doesn’t move.
What you get from the variable portion
The variable portion allows unlimited extra repayments, full offset account access, and the ability to benefit from any rate falls without penalty. This is the flexibility component. In 2026, with rates potentially near peak, retaining variable exposure on part of the loan preserves the ability to benefit when the cycle eventually turns.
The 2026 case for splitting
With genuine uncertainty about whether the RBA will hike in June, August, or beyond, a split loan avoids committing entirely to either outcome. If rates rise further, the fixed component absorbs that. If rates stabilise or fall in 2027, the variable component captures the improvement. It is a structurally honest response to genuine uncertainty.
What to watch
Not all lenders offer competitive rates on both portions simultaneously — the fixed rate on a split product may be slightly higher than a standalone fixed product. The offset account typically applies to the variable portion only, not the fixed portion. And the fixed portion still carries break cost risk if your circumstances change.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: ASIC MoneySmart, Fixed Rate Home Loans 2025; RBA Cash Rate Target, May 2026; National Consumer Credit Protection Act 2009.
