What are your options when a fixed rate term ends?

With the recent home loan interest rate increases, it’s likely your interest rate and therefore repayments will increase at the end of your fixed rate term.  So, if your fixed rate term is coming to an end, it might be a good time to start looking at your options.  

We’ve outlined three options you could explore.

Stay with your current lender

Staying with your current lender is perhaps the easiest option.  However, with interest rates rising significantly over recent months and many lenders not offering their most competitive rates to existing customers, this could prove to be an expensive option.

Refinance to a competitive variable rate

Refinancing to a variable interest rate home loan from a competitive lender, like Unloan, means that whilst your interest rate is likely to be higher than your existing fixed rate, you’re more likely to be getting one of the best deals in the market.

Unloan offers low rates to both new and existing customers, so our customers can rest easy knowing they are getting the best rates we offer. The application process for Unloan can be completed in minutes, so it might not be as much effort as you thought and could save you thousands.

Look for another fixed rate

Another option to refinance your loan with a new fixed rate loan, or re-fix with your existing lender.  Most lenders currently advertise higher interest rates on fixed rate home loans than their variable rate home loans, so this may prove to be a more expensive option over the short term.  However, it would provide the certainty of set monthly repayments that won’t change in the near future.

When deciding what to do when your fixed rate home loan ends, it's important to carefully consider your options and choose the one that best fits your financial situation and goals.  Don't be afraid to shop around and negotiate with lenders to get the best possible terms on your loan.  With a little research and effort, you can find a loan that suits you and could potentially save money.

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The article is provided for general information and have been prepared and provided without considering any person’s financial situation, needs or objectives. You should consider their appropriateness to your own situation before making any decisions.

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.