Split loan
A split loan divides one debt into two or more portions, commonly part fixed and part variable, so certainty and flexibility are held at the same time.
Split loan, explained.
The fixed portion holds a known repayment; the variable portion carries the offset account, the extra repayments and the redraw. The proportions are a decision about how much certainty you want and how much surplus you expect to hold.
Splits can also separate purposes: a portion used for the home and a portion used for investment or business, so interest can be traced for tax purposes. Keeping purposes in separate splits avoids the mixed-purpose problems that make deductions hard to substantiate.
Tools that use this term.
What will the repayments be?
Loan repayments calculator: principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments.
OpenToolWhat happens when my fixed rate ends?
Fixed rate ending calculator: estimate repayments if the loan moves to a variable rate when the fixed term ends.
OpenWhen the reading raises a question, ask it.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
