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Lou P.
Lou P.
Cleveland, QLD

My friend told me you can fix some of your home loan and leave some variable so that you can pay off the principal. Is this true?

5 years ago


That is correct – whenever a loan is 100% or part variable, you can make additional payments at any time.

By making the additional repayments you will be reducing the loan balance on the variable part of the loan more quickly.

So that you can get an idea of how much of a difference making additional repayments can have on your home loan play around with this calculator http://www.bizztools.net/2012/intouchfinance/bizztools2012_er.php - best of luck

Hi Lou,
Your friend is absolutely correct. A lot of my clients have their loans set up this way to give them the comfort of knowing that they are paying down a portion of the home loan therefore building equity & also having the benefit of set repayments.
Was this something that you were thinking about doing for your home loan?

Hi Lou,

Yes that is correct. You can do a split loan. Where you put some fixed and some variable to allow you to still pay off the principal and have an offset account to offset against the variable amount.

Hello Lou. Home loans can be split into variable and fixed . The portion that you may choose to fix depends on what you are looking at doing in the next few years. Depending on the type of loan/s you have ( eg investment or owner occupied) you can make interest only payments or principle and interest . I would advise having a chat about your full financial situation before fixing your loan. Happy to chat anytime - Deb

Yes this is possible with many lenders. They do have different processes for this. If you did your loan through a broker talk to them otherwise have a chat with your Lender. Your lender will normally charge an admin fee to split a loan and fix part. Also if you have redraw available be careful fixing a loan can affect the access you have to it.

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