Fixed Rate Ending? How to Plan Ahead with Confidence
If your fixed rate is ending, now is the time to take control of your next steps. Whether you locked in a low interest rate a few years ago or simply chose fixed repayments for financial certainty, it’s important to know what happens next—and how to make the most of the transition.
As your fixed term comes to an end, your lender will usually shift your home loan to their standard variable rate. This new rate can be significantly higher, leading to larger repayments if no action is taken. The key is to plan ahead so you’re not caught off guard.
What Are Your Options If Your fixed rate is ending?
Every homeowner’s situation is different, but the most common choices when a fixed rate is ending include:
Renegotiating with your lender
If you’ve kept up with repayments and maintained a good credit history, your current lender may offer a more competitive variable rate to keep your business.
Refinancing with another lender
Shopping around can help you find better interest rates, flexible features, or lower fees. A mortgage broker can assist you in comparing options and managing the paperwork.
Re-fixing for certainty
If you value consistent repayments, you might decide to fix your rate again for a new term. Just be sure to check whether the terms and rate suit your future goals.
Choosing a split loan
A split loan allows part of your loan to remain fixed while the other part becomes variable, offering a balance between stability and flexibility.
Accessing new refinancing pathways
Some lenders now offer refinancing with reduced serviceability buffers, helping homeowners who may feel locked in by earlier lending rules.
How to Prepare for Changes
Even with careful planning, your repayments could increase. Here are some practical steps to get ready:
Review your budget
Look at your current expenses and identify where you can reduce spending. Small changes can free up cash flow and ease the impact of higher repayments.
Consider early repayments
If allowed under your current loan, making extra repayments before your fixed term ends can reduce your balance and future interest costs.
Explore your savings options
Using an offset account or high-interest savings account can help reduce the interest charged on your loan and improve your financial buffer.
Think about your goals
Do you prefer predictability or flexibility? Do you want to access features like an offset account, redraw facility, or the ability to make extra repayments? Now is the time to realign your loan with your lifestyle.
Speak with an expert
A mortgage broker can assess your situation, explore the best options, and guide you through the process-saving you time, money, and stress.
Stay Proactive, Not Reactive
The most important thing you can do is act early. Don’t wait until your rate has already changed to start comparing options. Mark your calendar a couple of months before your fixed term expires and start planning your next move.
Bayland Finance Is Here to Help
At Bayland Finance, we help everyday Australians prepare for what comes next. Whether you’re refinancing, re-fixing, or exploring new loan structures, we’re here to make the process simple, stress-free, and personalised.
Book your free appointment with our team to explore your options and make sure your next move is the right one for you.
