What to do if your fixed rate loan term is coming to an end?

What to do if your fixed rate loan term is coming to an end?

Over the last few years, many Australians have opted to take out a fixed-rate home loan to make the most of record-low interest rates.

However, as the term for these loans come to an end it’s a fantastic opportunity to sit down with your mortgage broker in Melbourne to review your loan and compare the best options for your current situation.

Here are some things you could consider.


When you refinance your home loan you are basically paying out your old loan and taking out a new loan with a new lender.

There are many advantages of doing this with the first and most obvious one being that you could potentially obtain a lower rate. It’s often possible to get introductory offers from lenders that have a lower interest rate for a certain period of time.

The other major benefit of refinancing is that you can look to add additional features to your home loan that might have not been available with your old loan product. Typically fixed-rate loans don’t offer a wide range of features and the main reason to take out a fixed-rate loan is around the security of knowing what your repayments will be.

When assessing your options with your mortgage broker, consider things like redraw facilities or offset accounts which can be very helpful in lowering the overall cost of interest that come with taking out a mortgage.


When the term ends on your fixed rate loan, it is certainly possible to take out another fixed rate loan. Typically the rate will be different to your prior loan as the interest rates on offer will vary with market forces and the expectations around movements in the official cash rate set by the RBA.

If you are still in the same position in terms of wanting that security with your repayments then you can consider another fixed rate loan.

However, if you are thinking of potentially selling your property or want the option of refinancing in the next few years, there will be costs that come with exiting a fixed rate loan product. This is something that is worth considering before going down the path of another fixed rate loan.


When a fixed rate loan term ends it will generally revert across to a standard variable interest rate with the same lender.

That means your interest rate will change with any moves the lender makes with their standard variable rate.

This is an option if you’re happy with everything the loan product offers and with the underlying interest rate that you’ll be paying. However, it is certainly worth reviewing your options with your mortgage broker in Melbourne.

As mentioned, you can potentially obtain a lower rate for a period of time or you could get better features that will also help you manage your money and save on interest with something like an offset account.

When your loan term ends it’s always a great idea to sit down and compare your options. You don’t know what type of benefits you could potentially get until you speak with your mortgage broker.

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