Fixed rate home loan ending? See what your options are
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. Your lender will typically 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:
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Re-fix your home loan rate
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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?
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Are you planning to sell your house or use the equity?
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Has your financial situation changed?
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Will your family situation be changing?
What are the market conditions?
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What is the current Reserve Bank of Australia (RBA) interest rate?
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Is the rate likely to move?
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What's happening in the housing market?
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Will market conditions influence your decision to buy or sell your home?
What home loan features would you like?
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Do you want fixed repayments or fluctuating repayments, if interest rates change?
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Are you paying principal and interest, or interest only repayments? Would you like to change this?
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Do you need an offset account?
Look at your home loan options
Variable rate home loan
Unless you switch, the rate may move to a standard variable rate home loan when your home loan fixed period ends.
With a variable rate home loan, this may include:
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Unlimited, free redraws
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The option to open an offset account
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Flexibility to make extra repayments
Fixed rate home loan
By re-fixing your home loan rate, you can usually:
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Be certain of your rate for 1 to 5 years
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Protect yourself against rising interest rates
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Make extra repayments without incurring additional fees
Split home loan
A partially fixed (split) rate allows you to:
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Split your loan between a variable and fixed rate loan
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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 a home loan that offers unlimited redraws and a lower interest rate than a standard variable rate loan.
Many home loans can be switched. However, switching from a fixed rate loan to another home loan is subject to break or early repayment costs. Perhaps you'd like to find a lower interest rate or just find a home loan with better features.
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Important information
This article is intended to provide general information of an educational nature only. This information should not be relied upon as personal 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.