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What To Do If Your Fixed-Rate Loan Term Is Ending

If you’re currently on a fixed-rate loan and the term is coming to an end, you have a few options to consider.

Coming out of a fixed term is usually a great time to for us to review your loan.  We will compare what the best options are for your current situation. Things can change in just a few years, so it’s worth examining your financial plan going forward.

Here are some potential options we would explore:



When you refinance you are effectively paying out your old loan and taking out a new one. This doesn’t have to be another fixed-rate loan and we will compare the most suitable options for you.

While it is important to consider both fixed and variable interest rate options, there are also a lot of other features that we will investigate that might save you money. Things like offset accounts and access to other savings through credit cards can be beneficial, and these may not be available with a fixed interest rate loan.



With fixed interest rates rising, it could be time to consider a lower variable option. Alternatively, if you like the security of fixing your loan and knowing what your repayments are going to be, we might appraise another fixed interest rate loan.

However, a key consideration will be how much flexibility you might need in the near term, as fixed-rate products are typically not that flexible. They often charge fees for additional repayments, or if you want to exit the loan. If your income has increased then you might not want to stay with a fixed-rate plan either – as you may want the option of paying a lump sum to reduce the principal component of your loan.



When a fixed interest rate loan term ends, the loan will typically revert to a standard variable interest rate.

While this might be the type of loan you want to go with, the reverted interest rate might not be the lowest available and the loan features might not be what you need.

Before reverting, we will review your options, goals and what type of flexibility and options you need from a home loan.


It might even be possible to obtain a lower interest rate by looking at different lenders. It may also be the best option that you stay with your current lender  – in which case, we will try and get you a discounted rate in exchange for your continued loyalty

So no matter what the circumstances, it’s always a good idea for us to assess your loan and compare potential options.


If you would like to chat to us about your existing loan, or about finance and/or property in general, please feel free to give us a call on 02 8004 2222 or book an appointment.

Although we are located in Crows Nest, we service clients from St Leonards, Artarmon, Wollstonecraft, Cammeray, Northbridge, Naremburn, Neutral Bay, Greenwich, North Sydney, Waverton to Willoughby and all areas of Greater Sydney.

PS  This article is prepared based on general information. It does not take into account individual financial or property objectives or needs and is not financial product or investment advice.