The fixed portion may provide more predictable repayments for its term, while the variable portion may allow features such as an offset or additional repayments depending on product rules.
What to understand first
Splitting does not remove rate risk. Fixed portions can have restrictions and break costs, and the overall structure should match the borrower's circumstances.
What lenders may consider
Consider future plans, cash-flow needs and the product's specific restrictions rather than choosing a split only because rates are moving.
Practical next steps
Gather the relevant documents and compare the complete position, including repayments, fees, timing and the purpose of the finance. Lender policy varies, and information should be confirmed for the application being considered.
Questions before splitting
A split structure works best when each portion has a clear purpose and the borrower understands its restrictions.
- Decide how much certainty and flexibility the household actually needs.
- Check extra repayment, offset and redraw rules for each portion.
- Review the structure before the fixed period ends or circumstances change.
This article is general information only and is not personal financial, legal, accounting or tax advice. Credit is subject to lender criteria, eligibility and approval.
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