Once this period ends, you’ll need to decide what to do next. You’ll have four options:
- Refixing your loan under a new fixed rate term
- Switching to a variable home loan rate
- Opting to split your loan into new fixed and variable loans
- Refinancing your home loan to another lender for a better rate
If you don’t choose to refix your mortgage (or if you don’t take any action at all), your interest rate will typically get switched to your lender’s current variable interest rate until you specify otherwise. Unless you renegotiate your rate, the ‘revert’ rate applied at the end of the fixed term tends to be lender’s standard variable rate, which could ultimately cost you thousands of dollars in a ‘loyalty tax’ over the years.
Click here to read all about your four options.
Fixed interest rate term ending? Let us help.
If your fixed-rate term is coming to an end and you need some expert advice, speak to our Lending team today.
Our licenced mortgage brokers are experts in lending advice, and will help you weigh up your options, answer any questions you may have, and assist you in securing the best home loan rate and structuring your loans in the best possible way for your unique situation.
Get in touch with us now for your free home loan health check.
If you would like to know more about your home loan, please contact us today 02 9232 6800 or email lending@evalesco.focusedgrowth-dev1.com.au
