Fixed rate or variable rate? How to get the best of both worlds?


Promoted by Qudos Bank

With interest rates at historically low levels and consumers wanting a greater sense of security in uncertain times, could a split-rate home loan offer the best of both worlds?

Why would you offer your clients a split rate loan? *

Fixed rate and variable rate loans each have their advantages and disadvantages. By choosing a split loan, clients can get the benefits of both sides while potentially reducing the risks and possible disadvantages of each.

The fixed rate portion of the loan provides security because it allows your customers to lock in an interest rate for an agreed upon period – typically between one and five years. This protects against changes in interest rates, ensuring that this portion of the mortgage loan repayment will not increase even if interest rates rise. However, the flip side is that your clients would not benefit from lower interest rates if they change during their fixed term period.

The variable rate portion can provide more flexibility and can allow customers to take advantage of potential interest rate cuts. They may also be able to make additional repayments to pay off their mortgage faster and have access to a clearing account that can reduce the interest they pay. ^ The downside of a variable rate is that repayments of the loan would increase if the interest rate increased. .

Qudos Bank can offer your customers the best in security and flexibility. They offer the possibility of splitting their fixed-rate mortgage with any of their variable-rate loans (excluding construction loans).

Two of their most popular divisions are the Fixed Rate Home Loan with the No Frills Home Loan, providing clients with a great combination of rates. Here are some of the benefits of splitting with Qudos.

No-frills home loan:

– Access the advantages of low prices and flexibility
– No bank charges
– Low variable interest rate
– Unlimited additional refunds at no cost
– Instant withdrawal available through online banking (compensation not available for no-frills home loans)

Fixed rate mortgage:

– Security of a fixed interest rate
– No bank charges
– Additional refunds up to $ 10,000 per year

They have Broker Development Managers across Australia and e-business Managers to help you get this loan for your clients. For more information on Qudos Bank, visit or call our Broker Hotline on 1300 380 767

Important information:


Loans are subject to approval. Normal loan criteria, terms and conditions and fees and charges apply. Mortgage loan insurance is compulsory for mortgage loans greater than 80% and is subject to approval.

Product deposit requirements vary among Qudos Bank home loans. Split options must reach the highest minimum deposit amount.

^ Compensation not available for the fixed rate portion of the mortgage.

Your clients should read and consider the relevant terms and conditions and our guide to financial services available on our website., before deciding whether or not to obtain one of our financial products or services.

Fixed rate or variable rate? How to get the best of both worlds?

mortgage company

Last updated: September 20, 2021

Posted: September 20, 2021


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