Split Home Loan Structures for Mortgage Brokers

A split home loan divides the borrowing into fixed and variable portions, so part of the repayment stays predictable while the other part retains flexibility. Each portion has its own balance, rate and repayment. Features such as offset and redraw follow the selected product for each portion.

For a broker, the allocation starts with the client’s cash flow and plans. Size the variable portion for accessible savings and extra repayments, then decide how much borrowing the client wants to fix. A larger fixed portion also exposes more of the loan to possible break costs if the client sells or refinances early.

How a Split Home Loan Works

The lender records a split home loan as separate loan accounts within the approved structure. Each account has its own interest rate, repayment settings and feature rules. The accounts can share the same property security.

For example, a hypothetical $600,000 mortgage could have a $420,000 fixed account and a $180,000 variable account. The client pays both accounts, and the total repayment is the sum of those obligations. Choosing fortnightly repayments alone doesn’t create a split.

Two unrelated loans also don’t become a split simply because one has a fixed rate and the other is variable. A formal split is part of the lender’s documented loan structure. The offer and account records establish which amounts belong to that structure.

Verify the Offset Link at Settlement

Consider a hypothetical Macquarie Offset Home Loan with $420,000 fixed and $180,000 variable. As at October 2026, Macquarie’s fixed-rate change guidance says an offset account can’t link to a fixed account. It must link to an eligible variable account to provide the intended benefit.

Suppose the client’s instruction names the new variable account, but an account record still points to the portion that has become fixed. That mismatch is a settlement defect to resolve. Money in the transaction account alone doesn’t prove that the variable loan receives an offset benefit.

Compare the approved product names and loan account numbers with the lender’s final account records. Check the offset account number, its linked loan account and its effective offset status. Ask the lender to correct the link and retain confirmation before the client relies on the interest reduction.

If the correction links $30,000 of savings to the $180,000 variable account, the intended interest-bearing balance is $150,000 while those balances remain unchanged. The fixed account keeps its own interest treatment. This example assumes an eligible full-offset arrangement and illustrates the link check, not a universal product entitlement.

Choose the Fixed and Variable Allocation

Choose the variable amount from the client’s expected use of cash during the fixed term. Include money they want accessible, planned extra repayments and any likely lump sum. Then weigh the repayment certainty of fixing the remaining amount against their sale or refinancing plans.

A client with irregular income may value redraw access or an offset balance they can spend without making a loan repayment. A client planning to sell within a year has a different reason to retain flexibility. Fixing a large amount for several years can make that early exit expensive.

Compare Two Allocations on the Same Loan

These hypothetical allocations both use a $600,000 owner-occupied loan with principal and interest repayments over 30 years. Assume a two-year fixed rate of 6% a year and an initial variable rate of 6.5% a year. These are illustration rates, not lender offers.

The estimates use monthly amortisation over 360 payments. They exclude fees, offsets, extra repayments and daily-interest differences. Actual lender repayments depend on the approved contract and calculation method.

Allocation	Fixed amount	Variable amount	Fixed monthly repayment	Variable monthly repayment	Combined monthly repayment
70% fixed, 30% variable	$420,000	$180,000	$2,518	$1,138	$3,656
40% fixed, 60% variable	$240,000	$360,000	$1,439	$2,275	$3,714

The first allocation fixes more of the monthly obligation. The second leaves twice as much borrowing variable, so more of the loan can receive eligible extra repayments or an offset benefit. It also exposes more of the combined repayment to variable-rate changes.

Suppose the client expects to keep $50,000 accessible and repay another $40,000 during the two-year term. A $180,000 variable portion gives room for both in this simplified example. The choice still depends on expected cash use, minimum product amounts and whether the client wants that much debt fixed.

If the client expects a much larger lump sum, a larger variable portion may fit better. If a sale is likely before the fixed term ends, consider a shorter fixed term or keeping more borrowing variable. A 50/50 split has no special protection against those problems.

Benefits and Drawbacks

A split loan provides repayment certainty on the fixed portion and flexibility on the variable portion. The client still carries both obligations. A split doesn’t guarantee a lower combined cost than a fully fixed or fully variable loan.

Decision	Benefit	Drawback to explain
Fix part of the balance	That portion’s rate stays unchanged during its fixed term	Rate falls don’t reduce that fixed rate, and early changes can trigger break costs
Keep part variable	Eligible offset, redraw and extra-repayment features remain available on that product	Its rate and required repayment can rise
Use separate accounts	Repayments and features can be matched to each portion	More account records, repayment instructions and possible account fees need attention
Review at fixed expiry	The client can reconsider the allocation and products	The repayment and feature links need another review when the fixed term ends

Using the earlier hypothetical loan, a rise in the variable rate from 6.5% to 7.5% affects the variable portion while the fixed rate stays at 6%. For a like-for-like illustration at the start of the 30-year term, the $180,000 variable repayment rises from about $1,138 to $1,259. The combined repayment rises by about $121 a month.

With $360,000 variable, that same rate rise adds about $241 a month. After time has passed, the lender recalculates using the remaining balance and term, so these initial estimates aren’t a later repayment quote. Assess the client’s ability to meet the combined amount under higher variable rates.

Yes, a split loan can be refinanced, subject to the new lender’s approval and the existing accounts’ payout terms. Include any fixed break cost, discharge fee and new loan costs in the decision. Refinancing one portion while leaving the other secured against the same property also needs agreement about the security arrangement.

A split can also be used for an investment property. The allocation decision still concerns rates, repayments and flexibility. Separate-purpose borrowing and tax-sensitive redraw decisions need their own advice, which the debt recycling home loan guide explains.

Offset, Redraw and Extra Repayments

Attach each feature to the loan account that actually permits it. An offset account holds separate money that reduces the interest calculation on its eligible linked loan. Redraw is access to extra money already paid into the loan, under the lender’s redraw rules.

A variable portion doesn’t give the fixed portion the same entitlements. Put the extra-repayment limit and its measurement period beside the relevant account. A limit measured per fixed year is different from a limit covering the entire fixed term.

As at October 2026, Westpac’s split-loan guidance allows unlimited extra repayments on its variable portion. Its fixed portion permits up to $30,000 in prepayments during the fixed term without break costs. Westpac also permits fixed redraw within its rules, while offset attaches to an eligible variable portion.

Macquarie’s home loan rate and feature page, as at October 2026, lists unlimited variable extra repayments and variable redraw. Its fixed repayment allowance is $10,000 per year for the current product. Fixed redraw is unavailable during the fixed term, and offset attaches to the eligible variable account.

ANZ’s redraw guidance, as at October 2026, excludes redraw during the fixed period. Principal reductions made during that period also aren’t available for redraw later. Keep cash the client needs accessible in an appropriate account instead of assuming a fixed extra repayment can be withdrawn.

Use the offset account policy guide for detailed eligibility and linking rules. For this structure decision, record where the intended offset attaches and how the client will access spare cash. Recheck those settings whenever a portion is fixed, varied or rolled onto variable.

Check Lender Rules Before Submission

Match the requested amounts and features to named products before you submit the split. Use the same borrower facts when comparing lenders, so a different repayment type or fixed term doesn’t obscure the feature difference. The examples below use the $600,000 owner-occupied, principal-and-interest loan with a two-year fixed portion.

ANZ and Macquarie Examples

As at October 2026, ANZ’s fixed loan page lists principal-and-interest fixed terms of one to five, seven and ten years. New fixed loans have a $20,000 minimum. Its Standard Variable page also lists a $20,000 minimum new loan amount.

Both hypothetical allocations exceed those new-product minimums. ANZ’s split guide pairs Fixed with Standard Variable. Its existing-customer loan management page directs borrowers to arrange fixing or splitting through ANZ’s home loan support.

Macquarie’s guidance, as at October 2026, requires each split to have a minimum limit of $20,000 when fixing part of the loan. It has one-to-five-year fixed terms. The Offset Home Loan retains a variable account, so fixing the whole facility requires a different product arrangement.

For an existing Macquarie loan, request fixing through chat in Online Banking or the app. The bank sends a Variation Confirmation with the rate, fixed dates and repayment. Compare that confirmation with the requested amounts and account links.

Compare the Major-Bank Features

The ANZ, Westpac, National Australia Bank (NAB) and Commonwealth Bank examples below are current as at October 2026. Each fixed portion gives rate certainty for the selected term. The table compares features, not current rate offers or a universal best bank.

Lender and products	Fixed extra repayments	Offset for this two-year split	Fixed break-cost and structure considerations
ANZ Fixed plus Standard Variable	Lesser of 5% of the amount at the fixed period’s start or $5,000 in each fixed year	Eligible Standard Variable portion. ANZ’s separate one-year-fixed offset option doesn’t apply to this two-year example	Early repayment costs can apply above the allowance or when changing the fixed arrangement. New fixed and Standard Variable products each have a $20,000 minimum
Westpac Fixed Options plus Rocket	Up to $30,000 during the fixed term	Eligible Rocket variable portion	Break costs can apply for early fixed changes or excess prepayments. Multiple loan accounts can form the split
NAB Tailored fixed plus eligible variable	Up to $20,000 during the fixed term	Eligible variable portion	Economic costs can apply to early fixed changes. The app supports one fixed and one variable portion, with other structures handled by a home loan expert
Commonwealth Bank Fixed Rate plus eligible variable	Up to $10,000 in each fixed year, excluding Interest in Advance terms	Eligible variable portion	An Early Repayment Adjustment and Administrative Fee can apply during the fixed term. Multiple accounts can be chosen at origination without that adjustment for selecting the split

ANZ’s early repayment guide defines its annual tolerance. On a $420,000 fixed portion, 5% is $21,000, so the smaller $5,000 allowance applies. On a $240,000 fixed portion, it is also $5,000.

NAB’s split instructions distinguish the app’s two-portion route from other structures. Its loan terms explain economic costs. Commonwealth Bank’s Fixed Rate guide explains the split and fixed-term restrictions.

For a client expecting $40,000 of extra repayments, allocate those payments to the eligible variable portion in either hypothetical structure. Spreading them across fixed portions without checking each allowance could create a cost. A fixed-rate choice also needs a decision about rate lock before settlement.

Westpac Worked Structure and Fees

Westpac supports multiple separate fixed and variable loan accounts, as at October 2026. A hypothetical two-account structure could put $420,000 into a two-year Fixed Options account and $180,000 into Rocket.

Link the intended offset to the eligible Rocket account. Fixed Options has no offset.

If a structure has several eligible variable accounts, each can have its own offset link under Westpac’s product rules. Extra fixed accounts don’t acquire that entitlement. Record the actual approved number of loan accounts separately from the number of offset accounts.

Westpac lists no fee for splitting the loan. Its Rocket fee table lists an optional $395 annual package fee. It also lists a $600 owner-occupier establishment fee and an $8 monthly loan account fee, both waived under the package, plus a $100 document processing fee.

The package guidance says one annual package fee covers multiple packaged loan accounts and linked offsets. Fees here are Australian dollars. Compare the full approved fees across the facility, including any fixed break cost, before presenting the split’s cost to the client.

Other Products and the Final File Check

Ubank’s Flex Fixed page, as at October 2026, supports splitting with Flex Variable. It describes account management across up to five Flex split loans. Its older UHomeLoan variation documents concern a different product, so don’t transfer those limits to Flex.

Unloan’s interest-rate guide, as at October 2026, expressly says it doesn’t provide fixed or split loans. A variable-only product won’t meet a request for fixed repayment certainty.

Up’s Up Home page, as at October 2026, describes Payment Splits as a savings feature for its Savers. Dividing savings payments is a different task from dividing the mortgage into fixed and variable accounts.

Before submission, retain a structure summary with these details.

• The total facility amount and each requested loan portion, with amounts adding to the total.
• The product, rate type, fixed term and remaining loan term for every account.
• Principal and interest or interest-only settings, repayment frequency and expected combined repayment.
• The intended offset account and its specific linked loan account.
• Redraw conditions and extra-repayment allowances for each portion.
• Establishment, ongoing and variation fees, plus any existing fixed payout cost.
• The client’s reasons for the allocation, expected savings, planned extra payments and likely sale or refinance timing.

Repeat that comparison against the offer before settlement and against the opened accounts afterwards. Correct a wrong amount, repayment type or account link with the lender. Keep the lender’s final confirmation with the client’s approved structure so the repayment plan matches the loan they actually receive.