4 Tips for Coming off a Fixed Home Loan Rate
As the era of low fixed interest rates gives way to the impending inflated rates of a post-pandemic Australia, it's best to understand your options moving forward. Luckily enough it’s not all doom and gloom! In this month's PRD Insight, we delve into the world of fixed home loan rates, providing you with invaluable information to navigate this crucial phase in your financial journey. So if you're soon to exit a fixed home loan rate, keep reading to discover four essential tips that will empower you to make informed decisions.
- Look Beyond the Big 4
When it comes to your home loan options, it's essential to think beyond the big four banks. While they may be the most prominent players in the market, they aren't your only choice, it’s best to shop around! Explore other lenders, including credit unions and smaller banks, as they may offer competitive rates and flexible terms.
We suggest broadening your horizons, opening you up to a world of possibilities that can save you significant amounts of money in the long term. At PRD Penrith, we work with financial experts daily. Have a chat with our team, and we can help find you the Financial advisor you've been looking for.
- Use Mortgage Calculators
Before making any decisions, arm yourself with knowledge by utilising mortgage calculators. These handy tools allow you to estimate your repayments, compare different loan options, and assess the financial impact of switching from a fixed to a variable rate. Use online resources or consult our experienced team to understand your financial landscape better. (Anyone in particular you’d like to plug here perhaps?)
- Consolidate your debt
Refinancing is the ideal time to overhaul your lending & look for ways to consolidate.
If you have personal loans, core credit card debt or other debt that is not secured against your home there may be ways to make significant savings.
Another way to help reduce your repayments is to have an offset account where the balance of your savings to offset the interest payments on your loan. Many banks offer products like those mentioned above so asking the right questions can lead to significant opportunities.
When your fixed-rate term comes to an end, your loan will typically revert to a variable rate. However, this doesn't mean you should settle for the default option. Explore other fixed-rate loans available in the market. By securing another fixed-rate loan, you can maintain the stability and peace of mind you enjoyed during your previous fixed-rate period.
Evaluate the terms, interest rates, and repayment structures of various fixed-rate loans to find the one that best aligns with your financial goals. At PRD Penrith, we want to give everyone the best opportunity possible when involving one of life's great investments. As such, we want to connect you with the correct lending specialists, ensuring your goals align. Contact our team for more information.
- Speak to a Mortgage Broker
Navigating the complex world of home loans can be overwhelming. That's where our trusted mortgage brokers come in. Our team has established connections with industry professionals who can provide personalised advice tailored to your unique circumstances.
By consulting with a mortgage broker, you gain access to a wealth of expertise and assistance throughout the process, making your transition from a fixed home loan rate seamless and hassle-free.
As you consider coming off a fixed home loan rate, remember to explore alternative lenders, use mortgage calculators, consider other fixed-rate loans, and seek guidance from our expert mortgage brokers. At PRD Real Estate Penrith, we're dedicated to helping you make informed decisions and achieve your financial goals. So reach out to our team today, and let's embark on this exciting journey together.
Disclaimer: The information provided in this article is intended as general advice only and may not be suitable for your specific financial situation. It is always recommended to seek personalised advice from a qualified financial professional before making any financial decisions.
