Can I Split My Home Loan across Two Lenders?

I currently have a home loan split into variable and fixed with one lender, with the fixed portion due to expire shortly. I'd like to keep the variable with the current lender and move the fixed portion to another lender to get these current cashback offers. Is it possible to have two home loans on one property with two different lenders/banks?


  • I do not think any lender is going to agree to this

  • A lender would require a 1st mortgage over the property and you cannot have 2 x 1st mortgages

  • No. Unless you've got something like a $10m + asset that the banks would like to mitigate their risk by splitting the loans, which is done on a case by case basis and usually within the private banking department of banks. Otherwise doing so would not be worth their time.

  • Unless you can split the security for the loan, the lenders are not going to agree.

  • can you split your house?

  • No chance you can have 2 mortgages on one property and both be on lowest rate (owner occupier P&I). Simply the risk if you can't pay it both banks having to fight / coordinate possession then having to pursue you for any shortfall.

  • Can I Split My Home Loan across Two Lenders? … to get these current cashback offers

    Why stop at 2?

  • +2 votes

    Trying to make more horcruxes?

  • It's technically possible but I doubt any banks would take the risk at the moment.

    • It's technically possible but I doubt any banks would take the risk at the moment

      I don't think any mainstream lender in Australia offered 2nd mortgages (where's they're 2nd inline for recovery). It hasn't changed due to banking royal commission or covid. Second mortgages are probably only applicable to loan sharks and the like.

      • Not only does a 2nd mortgage holder rank behind the 1st mortgage holder in payout, but a 2nd mortgage holder cannot force the sale of the property.

  • Hi Ryan, mortgage broker here.
    This isn't possible as the second lender in this case wouldn't hold any security for the loan.
    Hope this helps,

  • Is it possible? Yes it is. With 2nd Mortgage option. But not worth the hassle if only doing for cashback deal.

  • Yes, it is possible to get a loan as a 2nd mortgage. However, there will be a reduction on your property valuation to account for the increased risk. For simplicity sake you may be better off asking your new lender if they can match (or beat) your existing lender variable rate. If you provide statements most likely they will agree.