Is Your Fixed Rate Coming to an End?

450,000 Mortgages Are Still On Really Low Fixed Rates And Resetting This Year
Is your fixed rate coming to an end? – here’s how to ‘soften the landing.’

According to the RBA, some 450,000 mortgages on those really low fixed rates will reset in 2024. At this stage the longer the fixed rate the bigger the win.

We’ve all been beaten over the head for the best part of 2 years now about how those resetting fixed rates were creating a ‘mortgage cliff’ and that cliff was going to be the end of the housing boom and by extension the end of the economy as we know it.

However, so far 1,470,000 fixed rate mortgages have reset and nothing too dramatic has happened at the macroeconomic level. Yes, the economy has slowed, but it’s not the predicted disaster.

While it all appeared quite scary, those that fared the worst were the ones who did ‘nothing’ and just watched and waited while their fixed rates expired.

By doing nothing their fixed rate reset back to the variable interest rate in the loan contract which often wasn’t competitive. See how the banks set it up so that they win when you do nothing? The contracted variable rate could end up being in the 7s when if you took out a new loan now it would be in the low 6s.

The Steps To Dealing With A Resetting Fixed Rate Mortgage.

While the banks are certainly looking out for themselves, they also know that once a fixed rate expires they don’t have any contractual reason for you to stick around if your rate isn’t competitive. That’s why the first step is always, as your rate is resetting to reach out to us and we’ll make sure that your loan gets repriced so that you are on the best rate possible.

Once we know what that rate is, then we can take a look at what’s the best rate out there in the market and see how yours compares. Then we can make a decision about what your best course of action is.

Based on the conversations I’ve had with clients and the state of the economy, most people have been fairly practical about the rising interest rates and adjusting to the new circumstances and doing what they can to lessen the burden.

If your fixed rate loan is resetting or you are looking to reduce your mortgage payments, it might be a good time to review your situation and see what your options are. Call 1300 661 211 or fill in the form below and we’ll organise a no-cost, no-obligation loan review and look at what your best path forward is.

Patrick O'Brien

Patrick is a Director and a Home Loan Specialist. He has been helping Australians with home loans since 2001. Prior to working as a mortgage broker Patrick was employed by Macquarie Bank for 3 years and also worked as an accountant for a publicly listed company. Patrick’s qualifications include:

Bachelor of Business, UTS Sydney. Majored in accounting and sub-majored in Finance and Marketing.
Diploma of Finance and Mortgage Broking Management FNS50310
Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40804