With fixed rate home loans, you have the security of knowing that your interest rate won’t change over a fixed period of time. However, when this fixed term comes to an end, it can be difficult to know what to do next. Whether you should refinance, or switch lenders depends on your individual circumstances and goals.

To make sure you get the deal possible that suits your current situation, consult with a mortgage broker who can review your options and help you decide which option is right for you. Here are some of the considerations when deciding whether to refinance or switch lenders when your fixed term expires.

Refinancing

Refinancing your fixed-rate home loan can provide you with a lower interest rate and potentially save you money over the term of your mortgage. It’s important to note though, that if you switch lenders when refinancing, there may be additional costs involved, such as application fees and closing costs. This is something to consider before making the decision to switch.

On the other hand, staying with your current lender when refinancing can allow you to benefit from loyalty discounts or special offers. You should discuss these options with your mortgage broker who will be able to advise on what potential savings could be achieved by refinancing with your current lender.

Switch Lenders

At the end of the fixed term, it may also be possible for you to switch lenders without refinancing. This could be a good option if you are happy with your current situation and don’t require any additional features or benefits from another lender. When considering this option, it is important to check that the fixed rate offered by the new lender is competitive and make sure you are aware of any fees associated with switching lenders.

Speak to your mortgage broker

No matter what your decision is, talking to a mortgage broker can help ensure you make an informed decision about what is best for your individual circumstances.

Get in touch with us today as we have access to data on fixed rates from different lenders and can provide advice on which option offers the most savings over the life of the loan. Our team will also be able to assist with the paperwork involved in refinancing or switching lenders, making the process as stress-free as possible.