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Why split your home loan into fixed and variable accounts?

Lock in some certainty

Know what your interest rate and repayments will be on your fixed loan for the full 1-5 year term.

Make additional repayments

Get ahead on your variable rate loan with no cap on extra repayments and no associated break costs.

Save interest with an offset

Keep funds in an offset facility to reduce the amount of interest you pay on your variable loan balance.

Use extra funds if you need to

You can treat your offset as a transaction account or redraw extra variable loan repayments if needed.


How to split your Westpac home loan

New home loan

Request a call back and one of our home lending specialists will phone to talk you through how a split loan works, and what it means for you.

Existing home loan

You can choose to fix part of all of your variable rate loan balance in Westpac Live online banking. Sign in, open the drop-down menu (next to your variable rate loan on your dashboard) and select 'Switch to fixed rate loan'.


Featured 2 year fixed rate

2.29% p.a. (3.53% p.a. comparison rate*) on the Fixed Options Home Loan

Applies to owner occupier home loans with principal and interest repayments with a Premier Advantage Package# ($395 annual package fee applies). LVR+ above 70% up to 80%. Available with new fixed rate loans or to existing variable rate loan customers looking to fix all or part of their loan.  These rates do not apply to existing fixed rate loans.

Credit criteria and T&Cs apply.

What else do you need to know?

The interest rate on a variable rate home loan can fluctuate: it could go either up or down, which would affect your repayments.

Variable rate home loans tend to offer more flexibility. They allow you to make unlimited extra repayments if you find yourself with spare cash, so you’ll be able to pay your loan off quicker. You can also redraw these additional funds if you need them for things like renovating your home.

Variable rate loans often have features such as an offset facility, which is a transaction account linked to your loan that counts against your loan balance, reducing the interest you pay.

Fixed rate home loans have an interest rate that doesn't change for a set period of time, giving you the certainty of knowing what your repayments will be for the fixed rate term. With a Westpac Fixed Options Home Loan, for example, you can fix your interest rate for a term of 1 to 5 years.

Fixing your interest rate means if interest rates go up, your repayments and interest charge will still stay the same for the duration of the fixed rate term.

Fixed rate home loans offer repayment certainty but tend to be more restrictive. There are limits on the amount of extra repayments you can make. There could also be break costs to pay if you want to pay off the loan during the fixed period or switch out from your fixed rate home loan (to another fixed rate or variable rate home loan).

Splitting your loan balance into fixed and variable rate accounts gives you both flexibility and certainty. Here’s how it works:

  1. Choose how much of your loan balance you want to split between fixed and variable
  2. Know exactly what your rate and repayments will be for the set term on the fixed rate portion
  3. Get flexible features on the variable rate account, such as the ability to make and redraw extra repayments, plus pay less interest with an offset facility.

A fee may apply if you split your loan balance, unless you have a packaged home loan. You will pay no fees when splitting your home loan balance into fixed and variable rate accounts with a packaged home loan. Find out more about our Premier Advantage Package option.

You can package your split loan (fixed and variable rate accounts) and bank account to enjoy the benefits of Premier Advantage Package, including interest rate discounts and savings on a range of great products.

By packaging your split loan accounts, you will only pay one $395 annual package fee each year – . Find out more about our Premier Advantage Package.

Things you should know

Key Fact Sheet for Home Loans

Applying for a Westpac Home Loan (PDF 468KB)

Premier  Advantage Package Conditions of Use (PDF 56KB)

*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. The cashback will be automatically deposited into this account within 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.