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Fixed rate home loan ending? See what your options are

What do you do when your fixed rate home loan expires? Planning ahead and reviewing your options can help you manage repayment changes.

If you're coming off a fixed rate, now's a good time to consider your financial and personal circumstances.

What happens on my mortgage loan maturity date?

At the end of your fixed rate term, your loan will automatically switch to a variable interest rate. If you have an HSBC home loan, we'll be in touch with you 2 to 3 months before this happens. 

Find out more: Fixed vs variable: What types of home loans are there?

What are your other options?

If you don't want a variable rate loan, you could either: 

  • Re-fix your home loan rate
  • Get a split home loan

Before you decide, you need to think about where you see yourself in the short and long term. 

Factors to consider when reviewing your home loan

Ask yourself the following questions: 

What are your current personal circumstances?

  • Are you planning to sell your house or use the equity?
  • Has your financial situation changed?
  • Will your family situation be changing?

What are the market conditions?

  • What is the current Reserve Bank of Australia (RBA) interest rate?
  • Is the rate likely to move?
  • What's happening in the housing market?
  • Will market conditions influence your decision to buy or sell your home?

What home loan features would you like?

  • Do you want fixed repayments or fluctuating repayments, if interest rates change?
  • Are you paying principal and interest, or interest only repayments? Would you like to change this?
  • Do you need an offset account?
Use our home loan repayment calculator to gain a clear picture of possible repayments before deciding.

Look at your home loan options

Variable rate home loan

Unless you switch, the rate will move to our Standard Variable Rate Home Loan when your HSBC home loan fixed period ends.

With a variable rate home loan, you'll get: 

  • Unlimited, free redraws
  • The option to open an offset account
  • Flexibility to make extra repayments

Fixed rate home loan

By re-fixing your home loan rate, you can: 

  • Be certain of your rate for 1 to 5 years
  • Protect yourself against rising interest rates
  • Make extra repayments without incurring additional fees[@mortgages-fixed-break]

Split home loan

A partially fixed (split) rate allows you to: 

  • Split your loan between a variable and fixed rate loan
  • Benefit from fixed rate repayments as well as the flexibility of variable rates

Switch home loans

Perhaps you'd like to find a lower interest rate or just find a home loan with better features. 

If you don't need an offset loan, you could consider moving to our Home Value Loan. It offers unlimited redraws and a lower interest rate than our Standard Variable Rate Loan. 

All HSBC home loans can be switched. However, switching from a fixed rate loan to another home loan is subject to break or early repayment costs. 

Still have questions?

If you already have a home loan with us, you can contact your Home Loan Manager or call us on 1300 308 008. Otherwise, you can fill in our online enquiry form to get a call back.

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Next steps

You might also be interested in

Compare principal and interest and interest only options and learn how to calculate mortgage repayments with our Home Loan Calculator.
Understanding how interest works can save you a lot of money over the life of your loan.
Find out the expected timeline for refinancing your home loan and what you can do to speed it up.

Important information

This article is intended to provide general information of an educational nature only. This information should not be relied upon as financial product advice as it does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information to your own circumstances and seek independent legal and financial advice prior to making any investment choice. There are risks associated with any investment and this document is not intended to list all of them in respect to any particular investment opportunity. Prices, levels and indications contained in this document are illustrative only and may not represent future performance. HSBC does not warrant or represent the performance of any investment opportunity. 

 

Disclaimer: Credit provided by HSBC Bank Australia ABN 48 006 434 162. AFSL/Australia Credit Licence 232595. Home Loan Terms (PDF), Personal Banking Booklet (PDF), Fees and Charges (PDF), and lending criteria apply. This article does not take into account your personal or financial situation. Please consider a relevant Product Disclosure Statement, available at hsbc.com.au or by calling 1300 308 008 before making a decision about this product.