Split loan calculator
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How to use our Split Loan Calculator
All you need to do is enter the required information and your repayment estimates will automatically be calculated. You can adjust each section to see how it can affect your loan.
- Loan amount – This pertains to how much you’re planning to borrow from the lender.
- Loan term – This refers to how long you’ll be paying off the split home loan.
- Frequency – This is how often your repayments will be. Choose between monthly, fortnightly or weekly.
- Fixed portion of loan – This is how much of the loan will have a fixed rate.
- Fixed term – This refers to how long the fixed term will be. Choose from one to five years.
- Fixed rate – Adjust the fixed interest rate for the fixed portion of the split loan.
- Variable rate – Adjust the variable interest rate for the variable portion of the split loan.
The results will calculate your fixed repayments, variable repayments, total monthly repayment, repayments after the fixed period, total interest payable, and the total home loan cost.
Even though the split home loan calculator only provides an estimate based on the information you’ve provided, it’s an incredibly helpful tool for borrowers considering a split loan.
How does a split home loan work?
A split home loan is a combination of a fixed rate and variable rate home loan. Traditionally, a home loan either has a variable rate or a fixed rate but with a split home loan, you can take advantage of both.
The way a split home loan works is by dividing your total mortgage amount into two separate accounts; one is a fixed portion and the other a variable portion. For example, you take out a home loan of $750,000 and want to do a 70:30 split. The $525,000 will have a fixed interest rate while the remaining $225,000 will have a variable interest rate. Generally, lenders are flexible with the portions you choose to split, so you can decide on a loan split setup that suits you best.
What are the benefits of a split home loan?
When you get a split home loan, you’re enjoying the best of both worlds. When interest rates fall, the variable portion of your mortgage will see lower repayments. Alternatively, if there’s a rate hike, you are protected from a significant increase in repayments because the other half of your mortgage is at a fixed rate.
Another useful aspect of a split home loan is that you can divide your loan in whatever ratio you prefer. You can tailor your split home loan to your needs to help you achieve your financial goals. Because you have access to both a fixed rate and variable rate home loan, you can enjoy loan features from both types of mortgages, as well.