What are your options when a fixed rate term ends?

If your fixed rate term is coming to an end, it might be a good time to start looking at your options. Here are three options you could explore.

Stay with your current lender

Staying with your current lender is perhaps the easiest option. However, with interest rates rising significantly over recent months and many lenders not offering their most competitive rates to existing customers, this could prove to be an expensive option.

Refinance to a competitive variable rate

Refinancing to a variable interest rate home loan from a competitive lender, like Unloan, means that whilst your interest rate is likely to be higher than your existing fixed rate, you’re on competitive low rates that get better and better, every year (up to 30 years).

Unloan offers low rates to both new and existing customers, so our customers can rest easy knowing they are getting the best rate we offer. The application process for Unloan can be completed in as little as ten minutes, so it might not be as much effort as you thought and could save you thousands.

Learn more about a variable rate home loan here.

Look for another fixed rate

Another option to refinance your loan with a new fixed rate loan, or re-fix with your existing lender. Most lenders currently advertise higher interest rates on fixed rate home loans than their variable rate home loans, so this may prove to be a more expensive option over the short term.  However, it would provide the certainty of set monthly repayments that won’t change in the near future.

When deciding what to do when your fixed rate home loan ends, it's important to carefully consider your options and choose the one that best fits your financial situation and goals. Don't be afraid to shop around and negotiate with lenders to get the best possible terms on your loan. With a little research and effort, you can find a loan that suits you and could potentially save money.

Explore our six step guide to refinancing and discover the benefits of switching to Unloan.  

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.