What Happens When Your Fixed Rate Ends?
Fixed rate home loans lock in your interest rate for a set period of time, typically between one and five years, providing stability and peace of mind while you budget and plan. But what happens when that fixed term ends?
Most lenders will automatically switch your loan to their standard variable rate unless you’ve given instructions to refix or renegotiate the terms. That’s where we step in to help you make the smartest move for your next chapter.
Don’t Let Your Fixed Rate Expire Without a Plan
As your fixed rate term approaches its end, it’s crucial to have a plan in place. Speaking with your mortgage broker means you’ll get a clear picture of what your new (or “roll-off”) rate and repayments might look like and, more importantly, what your options are.
Option 1: Repricing With Your Current Lender
Your lender isn’t guaranteed to offer you the best deal when your loan reverts to variable. In fact, many lenders won’t apply their most competitive rate unless you specifically ask.
The good news? We can do that for you. At Two Birds One Loan, we can negotiate on your behalf to secure a better rate with your current lender or use our market knowledge to compare options and give you bargaining power.
Option 2: Refinancing to a Different Lender
Refinancing is another option once your fixed term ends but it’s not always as simple as chasing a lower rate. You need to weigh up the true cost of switching, including any establishment fees, discharge costs, and potential Lenders Mortgage Insurance (LMI) if your loan-to-value ratio (LVR) is over 80%.
We can save you time, money, and stress. We do all the legwork comparing the best offers, crunching the numbers, and helping you make an informed decision that suits your financial goals.
Let’s Talk Before the Clock Runs Out
If your fixed rate term is coming to an end, don’t leave it to chance. Let us guide you through your options, ensure you’re not paying more than you need to, and help you take control of your mortgage moving forward.
Book a chat with the Birds today before your fixed rate flies the coop!
