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Top Tips for Homeowners Coming off Fixed Rate Home Loans

Top Tips for Homeowners Coming off Fixed Rate Home Loans

As homeowners approach the end of their fixed-rate home loans, it's important to navigate this transition period wisely. To ensure a smooth transition and make informed decisions, here are some essential tips for coming off your fixed-rate home loans. By following these tips, you can optimise your financial situation and secure the best possible outcome.

Assess your property's current market value.

Before exploring new loan options, it's crucial to evaluate your property's current value. Engage a PRD agent to appraise and determine your home value in the current market. A higher property value can enhance your borrowing power and potentially open doors to better loan terms.

Consolidate debts and explore interest-only options.

If you've accumulated additional debts during your fixed-rate term, consider consolidating them. Consolidation simplifies your financial obligations and may lead to lower interest rates. Additionally, contemplate the option of interest-only repayments temporarily to alleviate immediate financial pressure while you reassess your overall strategy.

consolidate your debts

Look beyond traditional lenders.

When exiting a fixed-rate home loan, don't limit yourself to mainstream lenders. Explore alternative lenders and online platforms that offer

  • competitive rates,
  • flexible terms, and
  • innovative loan features.

Seek advice from a mortgage broker who can provide access to a broader range of lending options tailored to your needs.

Avoid multiple loan applications.

While it's crucial to explore different loan options, refrain from making multiple applications simultaneously. Multiple applications can adversely affect your credit file. Instead,

  • conduct thorough research,
  • compare rates and terms,
  • and selectively submit applications to lenders that align with your financial goals.

Negotiate for better terms.

Seize the opportunity to negotiate better terms with your current lender or potential new lenders. Armed with a property valuation and knowledge of competitive rates, approach your lender to discuss improved terms. Emphasise your loyalty as a customer and showcase your positive payment history. If your current lender is unwilling to offer better terms, consider switching to a lender who can meet your requirements.

woman with red sweater on couch on a phone call


Exiting a fixed-rate home loan requires careful consideration and strategic planning. By implementing these essential tips, homeowners can make informed decisions, potentially save money on interest, and secure loan options that align with your financial goals.

Remember to conduct thorough research, seek professional advice when needed, and proactively negotiate with lenders to achieve the best possible outcome for your financial future. To get an idea on how much your property is worth, contact your local friendly PRD agent.



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