What to do if your fixed rate is ending

Many borrowers fixed their loans in recent years when interest rates were low, but now those fixed terms are now coming to an end. That means a large number of people with a home loan are facing higher interest rates in the coming months.

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What to do if your fixed rate is ending

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If your home loan fixed rate is coming to an end, it's time to review your home loan.

With rates on the rise, a new home loan could better align to your future goals.

There's more to a home loan than just an interest rate.

Available to anyone, our free home loan health check takes a pulse on your loan and provides an assessment that includes loan term, interest rate, home equity, loan to value ratio, offset facilities, and how your home loan aligns to your current goals, an often overlooked part of home loans.

Book your free home loan health check with Bendigo Bank today.

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If your fixed rate is coming to an end, it’s important to plan ahead.

Here are some helpful tips to consider if you’re nearing the end of your home loans fixed term.

1. Book a free home loan health check

If you’re approaching the end of a fixed term loan, get a free Home Loan Health Check from Bendigo Bank. They’re free to everyone, whether you bank with us or not. We’ll look at your loan from all angles and provide a complete assessment that takes into account:

• Interest rate
• Loan term
• Home equity
• Offset facilities
• Loan-to-value ratio

We’ll see how these stack up to your personal situation and goals and explore ways to help you find a loan that best suits your circumstances.

Book your free home loan health check here.

2. Check in with your household budget

Interest rates have increased significantly in the last two years. Checking in with your household budget 6-12 months before your fixed term ends can help you prepare for higher outgoings.

Focus on eliminating unnecessary expenses, cutting back on discretionary spending, and making room for higher home loan repayments.

3. Consolidate debts

As you near the end of a fixed term, try to reduce your reliance on short term credit like credit cards and Buy Now Pay Later services. If you have outstanding debts, consolidating them could make your budget easier to manage.

4. Consider changing your home loan structure

When you finish a fixed term home loan, you still have options. It’s the perfect time to reconsider your loan structure and look into refinancing. You may choose to split your loan into a fixed and a variable portion to give you a combination of certainty and flexibility.

5. Focus on reducing payments

Interest rate rises can be unsettling, but there are things you can do to reduce how much interest you pay and make your repayments more manageable. Two key options are:

• Move any savings into an offset account to reduce the balance on which your interest is calculated.
• Change up your repayment frequency. Switching from monthly to fortnightly repayments can save you thousands in interest over the long term.

6. Get hardship support if you need it

Unfortunately, life can throw us curve balls when we least expect them, and a change in circumstances during a time of economic difficulty can cause significant financial stress. If you’re concerned about affording your repayments when you come off your fixed rate, financial difficulty assistance may be able to provide the relief you need to get back on your feet.