SPLIT HOME LOAN
Split your Westpac home loan balance into separate fixed rate and variable rate accounts to get the best of both worlds.
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 fixed term.
Get ahead
Make unlimited additional repayments on your variable rate. And up to $30k on your fixed rate during your fixed term – with no break cost1.
Save on interest with an offset
Keep funds in an offset account to reduce the amount of interest on your variable loan balance.
Use extra funds if you need to
If you’ve made extra repayments, you can redraw extra fixed and variable loan repayments2.
Split loan tip #1
Unlike some other lenders, with Westpac you can redraw2 your fixed loan extra repayments. So you've got the freedom to shift your ‘available’ funds into whichever fixed or variable account has the higher interest rate at the time... to pay less interest!
- No redraw fee
- No min redraw on available funds, and if you stay under your $30k fixed loan prepayment threshold, you avoid the break cost1.
Up to $100k will be available to redraw from your variable loan online or over the phone each day (unlimited in-branch). For fixed loans you can redraw up to your prepayment threshold during your fixed term.
Help me decide how much to split
Split loan calculator
See what splitting your loan might look like. Simply slide the scale for an idea of your variable and fixed repayment portions.
Help me choose a loan
Use our selector tool to find the right home loan or loan combination that best fits.
Compare interest rates
Get a snapshot of our fixed or variable interest rates and compare home loan features.
How to split your Westpac home loan
New home loan
Buying or refinancing to us? Start applying online and one of our home loan specialists will call and chat through what a split loan means for you. Or if you have a question now, you've got plenty of ways to video chat, call or meet with a lender.
Current home loan
You can fix any portion of your variable rate loan balance anytime, in the Westpac App or Online Banking. How to split your variable rate. There may be a break cost1 if you split your fixed rate loan before your fixed term ends. Book an appointment for a break cost quote. Our home loan selector can also help you decide.
What else do you need to know?
What's a split home loan?
You can split your Westpac home loan balance into multiple separate accounts – with separate fixed rate and variable rate account numbers, statements and, potentially, repayment dates.
Split loans can help you manage repayments, and take advantage of the flexibility of a variable interest rate and the repayment certainty of a fixed interest rate.
How does a split home loan work?
Splitting your loan balance into fixed and variable rate accounts gives you both flexibility and certainty. Here’s how it works:
- Choose how much of your loan balance you want to split between fixed and variable
- Know exactly what your rate and home loan repayments will be for the fixed term on your fixed rate portion
- Get flexible features on the variable rate account, like the ability to make and redraw unlimited extra repayments to pay off your home loan faster. And with our variable rate Rocket loan, the option of offset.
Good to know
- There’s no fee for splitting your home loan
- There may be some ongoing fees on your new split home loan account (unless you package your loan for a $395 annual fee#).
- There may be a break cost1 if you split your fixed loan or change its repayment type before your fixed rate term ends: request a break cost quote.
What are the benefits of a variable rate?
The interest rate on a variable rate home loans 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 additional repayments if you find yourself with spare cash, so you’ll be able to pay off your loan early. You can also redraw these extra funds if you need them for things like renovating.
Our Rocket loans have features like offset – a transaction account linked to your loan that counts against your mortgage balance, to help reduce your interest. Calculate how much you could save with offset.
What are the benefits of a fixed rate?
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. With our fixed rate home loans, you can choose from our fixed rates between 1 to 5 years.
Fixing your interest rate means if interest rates rise or fall, your monthly repayments and interest charges will still stay the same for the duration of the fixed rate term.
Fixed rate 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 for paying off your fixed rate home loan during fixed period. Or switching to another fixed rate or variable rate home loan, before your fixed home loan term ends.
Can I package my split loan?
Yes. You can package your split home loan amount (fixed and variable rate accounts) and bank account to enjoy the benefits of our Premier Advantage Package, including interest rate discounts and savings on a range of great products.
By packaging your split loan accounts, you’ll only pay one $395 annual package fee each year# (package unavailable on our basic variable Flexi First Option home loan).
Check out our guides
Things you should know
Applying for a Westpac Home Loan (PDF 403KB)
Premier Advantage Package Conditions of Use (PDF 295KB)
1Break costs on fixed loan prepayments and switching: customers can make total prepayments of up to $30,000 (cumulative) for fixed loans, without costs or fees applying. You may incur a break cost and administration fee if your prepayments exceed this threshold, or if at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type.
2Redraw facility: if you have 'available funds' (you’ve made extra home loan repayments) and you’ve activated your redraw facility, you’re free to redraw them with no redraw fee. Up to $100k will be available to redraw from your variable loan online or over the phone each day (unlimited in-branch). For fixed loans you can redraw up to your prepayment threshold during your fixed term. Read our Home Loan Redraw Authority form (PDF 66KB) for full details.
*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. 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.
Premier Advantage Package Conditions of Use (PDF 295KB)
++LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.