Think about your future self – plan ahead, do some research and look at your options a few months out – don’t wait until the last minute. Try and get a sense of what your rate and repayments may look like once your fixed rate ends and start preparing for it. Check out our Home Loan Repayment Calculator as a good place to start.
You can chat to one of our home loan specialists or your broker in advance and discuss your options. The more time you give yourself to prep the better prepared you will be.
What options do I have?
You will be sent a letter prior to your fixed rate expiry outlining the options available. There are several options and our team is here to help you either re-fix your loan or move to a variable rate.
Re-fix
If you’re happy with your current set up you can re-fix your home loan for another term. Check out the terms and interest rates available to help you make the decision. If you decide to go down this path you can either:
- Fill in the agreement you’ll receive in the mail, select the new term and return it to us.
- Call us on 1300 322 196. You can re-fix your loan by providing verbal consent or we can issue a fixed rate form for you to sign and return.
Move to a variable rate
As a valued customer we will offer you our Special Residential Variable Rate when we communicate with you about your fixed interest rate expiry. If you don’t do anything, this is what your loan will default to automatically.
Still not sure?
Call us or your broker to talk through your options and help you find the right solution for you and your current circumstances.
What else can I do?
Start ramping up those savings. Get used to a higher rate by putting some extra money aside or consider making additional repayments at your current low rate (if that’s an available option in your loan terms and conditions).
Putting a little extra money aside if you’re able, can help create a bit of a buffer and make you feel more comfortable. There are so many different savings account options available depending on whether you want greater access to your funds and flexibility or if you want to lock your funds away where you can’t be tempted to touch them.
Check out our Bonus Saver account for a great rate that’s simple to earn where you can access your money whenever you want plus get unlimited withdrawals without losing your bonus interest. Or look into a Term Deposit where you can lock your money away for a fixed term on a fixed rate, so you know exactly how much interest you’ll earn. Both options are Government Guaranteed up to $250k.
What can I do if I will find it hard to afford an increased repayment?
Please contact our Customer Care team on 138 001. We may refer you to our Hardship Team to review your situation.
Examples of financial hardship causes include:
- unemployment
- redundancy
- medical illness & associated costs
- relationship separations
- reduction of income (temporary or permanent)
- unplanned expenses
- financial difficulty
- prison sentence (short term)
- death of a borrower
- natural disaster
- pandemic (Covid-19)
Situations that aren’t considered as a reason for hardship include:
- Interest rate increases
- Christmas, holidays
- Birthdays
- Travel and holidays
- Weddings
- Ordinary day to day living expenses
If you do not meet the financial hardship conditions, but are concerned that future increases may affect your ability to meet repayments, please contact our Customer Care team on 138 001 and we can connect you with one of our Lending Solutions Team who can review your loan product.