Thinking of fixing after Tuesday’s RBA rate rise? Read this first.

General info only, not financial advice.

If you’re about to call your bank and fix your rate: call me first.

Fixing can be a great idea. It can also lock you into the wrong deal, with the wrong features, and often break costs if you need to change anything later.

Thinking of fixing? Let’s review your options properly first.

Fixed vs variable:

Fixed rate

• Pros: predictable repayments, easier budgeting.

• Cons: often less flexible (extra repayments/offset/redraw either limited or non-existent and if you refinance or sell during the fixed term you may face break costs.

Variable rate

• Pros: Flexibility (offset/redraw/extra repayments), easier to refinance.

• Cons: repayments can move - up, or down!

  
  

Split loans can be a good middle ground, when set up correctly.

Before you fix, ask:

• Do I plan to move, refinance, or restructure in the next 1 to 3 years?

• Do I rely on an offset or make extra repayments?

• Am I fixing for a strategy, or because I’m stressed?

  
  

After lower repayments?

Sometimes (not financial advice), a loan term extension can lower repayments by spreading the loan longer. The trade-off is you may pay more interest over time. It’s one option, but certainly not the only one.

If you’re taking the time to call your bank to fix, take the time to let me compare the market properly. If fixing is best, great. If a refinance or restructure is smarter, I’ll show you.

Contact me with these details:

• lender + loan balance

• owner-occupied or investment

• whether you use offset

• and whether you might move soon

  ...and let me show you some better options!