As your fixed rate comes to an end, there’s a few things you need to know.

What will your rate be when the fixed term ends?

Typically, your rate will go to what is known as the ‘revert’ rate. This is often the standard variable rate of your lender and usually higher than what your lender would offer to a new customer. Loyalty does not pay with your mortgage. It can cost you thousands if you don’t take action.

What should I do when it’s ending?

It’s best to be prepared. Ideally beginning to make plans 2-3 months prior. Find out exactly the date your fixed rate is ending and ask what the rate will revert to. Don’t be afraid to challenge your lender for a better rate. Research rates that are available and speak to your mortgage broker about your situation. Learn what is available to you.

How do I switch?

Reach out to me, we can chat about your situation and find the best lender to suit your needs.

Every lender has different policies, rules and views on things such as income type, self employed, time in your job, dependents. It’s my job to find the lender that gets you the best deal specifically for you.

An example of the difference it could make (May 2024)

If you have a $400,000 loan on a property worth $600,000 and 27 years remaining, some revert rates are in the region of 7.0%. Competitive rates in this scenario are 6.3%, or in some cases, even lower.

At 7.0% - monthly minimum repayment would be $2751
At 6.3% - monthly minimum repayment would be $2571

This is a difference of $180 per month, or, over 27 years represents $58,320.

There is many other ways to lower your amount paid, reduce the length of your loan and save thousands on interest.

If you want to know more, contact me.