Split loan option (Flexible Choice)

Enjoy the benefits of both a fixed and a variable interest rate

When choosing a home loan, one of your major decisions is to take a fixed rate or a variable interest rate. With Flexible Choice, you can make part of your loan fixed, and part variable.

How does Flexible Choice work?

Flexible Choice is a split interest rate loan that combines the flexibility of a variable interest rate with the security of a fixed interest rate. Flexible Choice is a combination of up to 2 smaller, separate loan accounts together forming one home loan. You can nominate a portion of your home loan at a fixed interest rate and the remaining at a variable interest rate - just choose the proportion that works for you.

With Flexible Choice, the fixed rate portion of your home loan is protected from increases in interest rates for the fixed rate period. You can still make additional payments and benefit from interest offset on the variable rate portion of the loan, which may help you to pay that portion off faster.

The benefits of splitting your home loan

You'll protect yourself against potential interest rate rises by nominating portions of your loan as fixed. And with the remaining portions as variable, you get flexibility that could help you pay off that part of your loan more quickly, particularly if interest rates decrease.

How to apply

When you apply for a home loan you can choose a split rate loan with Flexible Choice.

If you're an existing home loan customer and want Flexible Choice, speak to one of the Bank of Melbourne home loan experts on 13 22 66 or drop by a Bank of Melbourne branch.

The Detail

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this general information, please consider if it's right for you. If you need help, call 13 22 66.