When your fixed rate expires, your loan will most likely revert to your lender’s standard variable rate, which is often much higher than competitive rates in the market.
To avoid stress when your fixed rate expires, here are some tips to help:
- Have a look at your budget and start saving a buffer before your fixed rate expires. Interest rates and other living costs are on the rise because of inflation. Keeping a close eye on your cashflows to make sure you can cover higher loan repayments will provide peace of mind. If you would like professional advice on how to better manage your cashflows and debt, our financial planners are here to help.
- Take advantage of the added flexibility of your variable rate home loan. Once you are on a variable rate you can pay extra into the loan or put those funds into an offset account to save interest and still access the funds when needed.
- Negotiate a better rate with your existing lender or refinance to a new one to get a better rate and loan features. Call our experienced mortgage broking team to help you ensure that you have the most cost-effective loan in the market. We can access over [40] lenders in the market to find the loan that suits you, taking into account both interest savings and costs to move lenders. We even handle the paperwork, all at no additional cost to you!
Customers we have helped:
Client A: We helped a client refinance to a new lender and variable rate that saved them over $3,000 in interest each year. To make the transition even easier, the new lender was offering a cash rebate of $3,000.
Client B: An existing client was coming off a fixed rate and was offered a variable rate that was much higher than what the market was currently offering. We negotiated their rate down by 1.25% with their existing lender.
What’s our best piece of advice?
Call us on (02) 6686 6678.
We’ll discuss the best options based on your situation and together, we’ll work out the best way forward.
Mark Nancarrow
Lending Manager