Loan amount

$

Minimum deposit

Loan type & Term

Sort by

Default

All filters

Loan purpose
Loan amount
$
Deposit
Loan type and term
Repayment type
Features
Specials
Fees
States
Providers

Type of lender

Compare
Owner Occupied
P&I
Offset Account
Extra repayments
Real Time Rating™

Cashback

Switch now and get up to $3,000 cashback. T&Cs apply.
Australian Credit Licence 244616
Interest Rate
Comparison Rate*
Repayment

6.09%

p.a

Variable

6.48%

p.a

$3,249

monthly

Enquire
Australian Credit Licence 244616
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™
Australian Credit Licence 244310
Interest Rate
Comparison Rate*
Repayment

6.04%

p.a

Variable

6.06%

p.a

$3,234

monthly

More details
Australian Credit Licence 244310
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

$2,000 cashback when you refinance your home loan to BOQ
Australian Credit Licence 244616
Interest Rate
Comparison Rate*
Repayment

6.09%

p.a

Variable

6.24%

p.a

$3,249

monthly

Enquire
Australian Credit Licence 244616
Compare
Owner Occupied
P&I
Offset Account
Extra repayments
Real Time Rating™
Australian Credit Licence 393283
Interest Rate
Comparison Rate*
Repayment

6.19%

p.a

Variable

6.23%

p.a

$3,280

monthly

More details
Australian Credit Licence 393283
Compare
Owner Occupied
P&I
Offset Account
Extra repayments
Real Time Rating™
Australian Credit Licence 244310
Interest Rate
Comparison Rate*
Repayment

6.19%

p.a

Variable

6.51%

p.a

$3,280

monthly

More details
Australian Credit Licence 244310
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™
Australian Credit Licence 244310
Interest Rate
Comparison Rate*
Repayment

6.09%

p.a

Fixed - 3 years

6.48%

p.a

$3,249

monthly

More details
Australian Credit Licence 244310
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

Receive $2000 in cashback when you refinance. T&Cs apply.
Australian Credit Licence 233714
Interest Rate
Comparison Rate*
Repayment

6.29%

p.a

Variable

6.30%

p.a

$3,311

monthly

Enquire
Australian Credit Licence 233714
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™
Australian Credit Licence 237502
Interest Rate
Comparison Rate*
Repayment

6.30%

p.a

Variable

6.32%

p.a

$3,314

monthly

More details
Australian Credit Licence 237502
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

Receive $2000 in cashback when you refinance (min. loan amount $250K, LVR < 80%). T&Cs apply.
Australian Credit Licence 233714
Interest Rate
Comparison Rate*
Repayment

6.59%

p.a

Variable

6.60%

p.a

$3,404

monthly

Enquire
Australian Credit Licence 233714
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

Receive $2000 in cashback when you refinance (min. loan amount $200K, LVR < 80%). T&Cs apply.
Australian Credit Licence 233714
Interest Rate
Comparison Rate*
Repayment

6.59%

p.a

Variable

6.60%

p.a

$3,404

monthly

Enquire
Australian Credit Licence 233714
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™
Australian Credit Licence 233714
Interest Rate
Comparison Rate*
Repayment

6.84%

p.a

Intro 24 months

7.16%

p.a

$3,483

monthly

Enquire
Australian Credit Licence 233714
Compare
Interest Only
Offset Account
Extra repayments
Real Time Rating™
Australian Credit Licence 234945
Interest Rate
Comparison Rate*
Repayment

6.96%

p.a

Variable

7.16%

p.a

$2,900

monthly

Enquire
Australian Credit Licence 234945
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

$2,000 cashback when you refinance an eligible home loan.
Australian Credit Licence 234527
Interest Rate
Comparison Rate*
Repayment

7.24%

p.a

Variable

7.24%

p.a

$3,611

monthly

Enquire
Australian Credit Licence 234527
Compare
Owner Occupied
P&I
Extra repayments
Real Time Rating™

Cashback

$2,000 cashback when you refinance an eligible home loan.
Australian Credit Licence 234527
Interest Rate
Comparison Rate*
Repayment

6.59%

p.a

Fixed - 2 years

7.27%

p.a

$3,404

monthly

Enquire
Australian Credit Licence 234527
Compare
Interest Only
Extra repayments
Real Time Rating™
Australian Credit Licence 234945
Interest Rate
Comparison Rate*
Repayment

7.26%

p.a

Variable

6.96%

p.a

$3,025

monthly

Enquire
Australian Credit Licence 234945
Compare
Interest Only
Extra repayments
Real Time Rating™
Australian Credit Licence 233714
Interest Rate
Comparison Rate*
Repayment

7.24%

p.a

Intro 24 months

7.56%

p.a

$3,017

monthly

Enquire
Australian Credit Licence 233714
Compare
Owner Occupied
Interest Only
Extra repayments
Real Time Rating™

Cashback

$2,000 cashback when you refinance an eligible home loan.
Australian Credit Licence 234527
Interest Rate
Comparison Rate*
Repayment

6.89%

p.a

Fixed - 2 years

7.33%

p.a

$2,871

monthly

Enquire
Australian Credit Licence 234527

Embed

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.

Fact Checked

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

Frequently Asked Questions

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 a fixed rate and variable rate?

A variable rate can fluctuate over the life of a loan as determined by your lender. While the rate is broadly reflective of market conditions, including the Reserve Bank’s cash rate, it is by no means the sole determining factor in your bank’s decision-making process.

A fixed rate is one which is set for a period of time, regardless of market fluctuations. Fixed rates can be as short as one year or as long as 15 years however after this time it will revert to a variable rate, unless you negotiate with your bank to enter into another fixed term agreement

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 however fixed rates do offer customers a level of security by knowing exactly how much they need to set aside each month.

Did you find this page helpful?

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.