Before your fixed-rate home loan period ends, expect a reminder from your bank, typically through a letter, SMS, or digital banking notification.
This is your cue to review available options:
If you don't act, your home loan will shift to a variable rate at the end of the fixed period. You'll receive a notice detailing this change. The variable rate depends on factors like property usage (investment or residence). With this option, you might access an any extra repayments made during the fixed period as redraw funds.
Choose another fixed rate to maintain consistent repayments. Be mindful of potential economic costs and additional fees if you end this new fixed period early. Consider any market commentary as to whether interest rates are likely to keep going up or hold, and when they’re expected to go back down
Mix stability and flexibility by dividing your loan into fixed and variable portions. This allows you to enjoy the predictability of fixed rates while benefiting from variable rate features like offset accounts. Some also see this as a way of hedging your bets against interest rate movements
Check out Craggle's Guide to Winning at Home Loan Negotiations for information on how negotiate a better rate to ease your transition.
Alternatively, Sign-Up to our next Crowd Haggle event and let us handle the negotiations, it only takes 3 Minutes.
Disclaimer: This is not financial advice and is for educational purposes only.
The Craggle Team