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Find and compare split home loans
Find home loans from a wide range of Australian lenders that suit your needs, whether you're investing, refinancing or looking to buy your first home. Compare interest rates, mortgage repayments, fees and more.
Ocean Owner Occupied Variable
Gold Award Winner 2022
2.69
% p.a
Variable
2.76
% p.a
If you have 40% deposit or equity available in your home, you may be able to enjoy the benefits of this rate, plus offset and redraw, with no ongoing fees.
WLTH terms and conditionsProduct Star Gold Home Loan Real Time Rating™ Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.44 % p.a Variable | Comparison Rate* 2.49 % p.a | Company | Repayment $1,337 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | This low interest rate is available for a limited time only to borrowers with more than 40 per cent equity. Plus free redraws and no ongoing fees. | Highlighted |
Product Back to Basics Home Loan Special Offer Real Time Rating™ | Interest Rate 2.72 % p.a Variable | Comparison Rate* 2.73 % p.a | Company | Repayment $1,379 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Receive $3,000 cash when you take out a Suncorp Bank home loan of $750K or more with LVR <=90%. Apply by 30 November 2022, settle by 28 February 2023. Unless withdrawn prior. T&Cs & eligibility criteria apply. ~ Ends in 5 months | Owner occupiers with a 30% deposit can benefit from this competitive variable rate home loan, offering unlimited extra repayments and free redraw. | |
Product Ocean Owner Occupied Variable (No Annual Fee) Real Time Rating™ Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.69 % p.a Variable | Comparison Rate* 2.76 % p.a | Company | Repayment $1,375 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Winner of Best Refinance Home Loan, RateCity Gold Awards 2022 | If you have 40% deposit or equity available in your home, you may be able to enjoy the benefits of this rate, plus offset and redraw, with no ongoing fees. | |
Product Smart Booster Home Loan Discounted Variable - 2yr Real Time Rating™ | Interest Rate 2.60 % p.a Intro 24 months | Comparison Rate* 2.96 % p.a | Company | Repayment $1,423 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Buyers and refinancers can benefit from this special discounted rate, plus no ongoing fees and optional access to an offset account. | ||
Product Real Deal Home Loan Real Time Rating™ | Interest Rate 2.87 % p.a Variable | Comparison Rate* 2.91 % p.a | Company | Repayment $1,402 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in 3 months | ||
Product Discount Variable Real Time Rating™ | Interest Rate 2.90 % p.a Variable | Comparison Rate* 2.96 % p.a | Company | Repayment $1,407 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Basic Home Loan Real Time Rating™ | Interest Rate 6.05 % p.a Fixed - 3 years | Comparison Rate* 3.65 % p.a | Company | Repayment $1,942 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Green Home Loan Real Time Rating™ Winner of Best Green Home Loan, RateCity Gold Awards 2022 | Interest Rate 2.63 % p.a Variable | Comparison Rate* 3.05 % p.a | Company | Repayment $1,366 monthly | Features Redraw facility Offset Account Borrow up to 90% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Winner of Best Green Home Loan, RateCity Gold Awards 2022 | ||
Product 5 year Fixed Rate Home Loan Real Time Rating™ | Interest Rate 6.69 % p.a Fixed - 5 years | Comparison Rate* 5.91 % p.a | Company | Repayment $2,061 monthly | Features Redraw facility Offset Account Borrow up to 95% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Smart Booster Investor Bundle Discount Variable - 1 Year (Principal and Interest) Real Time Rating™ | Interest Rate 2.74 % p.a Intro 12 months | Comparison Rate* 3.46 % p.a | Company | Repayment $1,500 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Home Advantage Package Real Time Rating™ | Interest Rate 3.19 % p.a Variable | Comparison Rate* 3.58 % p.a | Company | Repayment $1,452 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Premium Plus Package Variable Rate Real Time Rating™ | Interest Rate 3.44 % p.a Variable | Comparison Rate* 3.83 % p.a | Company | Repayment $1,492 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in 3 months | ||
Product Real Deal Home Loan Real Time Rating™ | Interest Rate 3.07 % p.a Variable | Comparison Rate* 3.11 % p.a | Company | Repayment $1,434 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in 3 months | ||
Product Premium Plus Package Fixed Rate Real Time Rating™ | Interest Rate 5.09 % p.a Fixed - 2 years | Comparison Rate* 4.83 % p.a | Company | Repayment $1,770 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in 3 months | ||
Product Back to Basics Home Loan Special Offer Real Time Rating™ | Interest Rate 2.95 % p.a Variable | Comparison Rate* 2.96 % p.a | Company | Repayment $1,415 monthly | Features Redraw facility Offset Account Borrow up to 70% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Receive up to $4,000 cash when you take out an eligible Suncorp Bank home loan. Receive either $3K by taking out a Suncorp Bank home loan of $750K+ or $4K by taking out a Suncorp Bank home loan of $1m+ with LVR ≤90%. Apply by 30 November 2022, settle by 28 February 2023. Unless withdrawn prior. T&Cs & eligibility criteria apply. ~ Ends in 5 months | ||
Product Fixed Rate Home Loan Real Time Rating™ | Interest Rate 5.19 % p.a Fixed - 2 years | Comparison Rate* 5.08 % p.a | Company | Repayment $1,787 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | Cashback Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. LVR ≤90%. Limited time offers extended. T&Cs apply. ~ Ends in 3 months | ||
Product Ocean Variable Investment Real Time Rating™ | Interest Rate 3.09 % p.a Variable | Comparison Rate* 3.57 % p.a | Company | Repayment $1,437 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Ocean SMSF (With Offset) Real Time Rating™ | Interest Rate 4.59 % p.a Variable | Comparison Rate* 4.80 % p.a | Company | Repayment $1,148 monthly | Features Redraw facility Offset Account Borrow up to 60% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Ocean SMSF (With Offset) Real Time Rating™ | Interest Rate 4.59 % p.a Variable | Comparison Rate* 4.80 % p.a | Company | Repayment $1,683 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site | |||
Product Ocean SMSF (No Offset) Real Time Rating™ | Interest Rate 4.59 % p.a Variable | Comparison Rate* 4.80 % p.a | Company | Repayment $1,683 monthly | Features Redraw facility Offset Account Borrow up to 80% Extra Repayments Interest Only Owner Occupied | Real Time Rating™ | Go to site |
Buying a new home is a big step, whether you're a first home buyer or an experienced investor. It can be especially daunting for first time buyers who haven't yet explored the maze of financial options for buying that dream property.
It's unlikely that you'll ever take out such a large loan for anything other than a home, so it's important to take the time to do some careful and detailed research and compare the range of home loan products that are available. For example, choosing between a home loan with a variable rate or a fixed rate can make a big difference to your household budget.
Another option to consider are split loans, which combines some of the benefits of both variable and fixed interest rates, along with some of the potential drawbacks.
What are split loans?
When you apply for a home loan in Australia, you agree to pay back the money you borrow, plus interest charges.
There are three main ways for interest to be charged on your loan balance:
- With a variable rate home loan, the interest you're charged on your home loan may rise or fall, based on changes to the national cash rate and other factors. If your lender increases your variable rate, you could enjoy cheaper monthly repayments, or more easily make extra repayments to help pay off your property faster. But if interest rates rise, so will the cost of your monthly loan repayments, which could affect your budget.
- With a fixed rate home loan, you agree to pay a set interest rate for a limited period of time; typically one to five years. During this fixed rate period, your repayments will stay the same, even if variable rates rise or fall, which can make budgeting simpler. While this can help protect you from higher interest charges if variable rates rise, you may also miss out on interest savings if variable rates fall.
- A split home loan may be able to help you enjoy the best of both worlds. In this arrangement, interest is charged at a fixed rate on a portion of your loan amount for a limited time, and at a variable rate on the remaining portion of your loan. Split loans let you benefit from some of the security of a fixed rate and some of the flexibility of a variable rate.
Are there rewards and risks with split loans?
Split loans share many benefits and drawbacks with other loan types, and also have their own unique quirks.
For example, you won't be able to easily refinance the fixed portion of the loan during the fixed rate term due to the break costs involved, and if variable rates rise during the term, you may be in for some bill shock once you revert to a variable rate. Also, the revert rate on your fixed portion may not be the same as the variable rate that on your variable portion - you could find that you're paying interest at two different variable rates, unless you choose to refinance and remove the split at this stage.
A split loan may also let you benefit from access to flexible features, such as an offset account or a redraw facility, and the ability to make additional repayments on the variable rate portion, while also benefiting from more consistent repayments from the portion with the fixed interest rate. These features aren't always available with typical fixed home loans, which could make a split loan useful to some borrowers.
Whether you choose a variable, fixed or split rate home loan, it's important to look at more than just the advertised home loan interest rates. Sometimes low rate home loans charge high fees, costing you more overall than some other loans with higher rates and low or no fees. A quick way to estimate the value of different mortgage deals is to look at the comparison rate, which combines the cost of interest and standard fees into a single percentage.
Before applying for a split loan, consider contacting a mortgage broker. These home loan experts can help you work out if a split rate will best suit your financial situation, guide you through comparing lending criteria for a variety of home loan options, and even help you complete the mortgage application process.
Find a mortgage broker
Mark Bristow
Personal Finance Editor
Mark Bristow is RateCity's Home & Personal Finances Editor, and an experienced analyst, researcher, and producer. Focused primarily on Australian mortgage and home loan expertise, he has been a journalist and writer in the financial space for over ten years, previously researching and writing commercial real estate at CoreLogic. In the years since, Mark has worked for the Winning Group, Expedia, and has seen articles published at Lifehacker and Business Insider.
This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.
What is a split home loan?
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
What is the difference between fixed, variable and split rates?
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
If a mortgage rate changes, will it affect your repayments?
If you have a variable rate home loan, changes to your mortgage rate may affect the cost of your repayments. Rising interest rate could cost you more in interest charges, while interest rate cuts could see you paying less interest on your home loan.
If you have a fixed rate home loan, your interest charges will stay the same during the fixed interest period, regardless of whether the lender’s variable rates rise or fall. Once the fixed rate term expires, your loan will revert to a variable rate, so be prepared in case of bill shock.
What are the different types of home loan interest rates?
A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan.
Having understood what are home loan rates in general, here are the two types you usually have with a home loan:
Fixed rates
These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.
Variable rates
With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.
What is a mortgage rate?
The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.
Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.