What happens when your fixed rate loan period ends?
We understand that you might be concerned about what changing rates might mean for your finances. Here is some handy information, tips and tools to help you plan ahead as you approach your fixed rate expiry. Remember that we are here to support you, both now and when your fixed rate home loan expires.
What happens when your fixed rate loan ends?
About five weeks out from expiry, you'll be sent a letter including your new rate and repayment amount (if you roll over to a variable rate) and the options available to you.
When your fixed rate home loan term expires, review your personal and financial circumstances before re-fixing or switching to a variable rate.
Choose your next step
Option 1: roll onto a variable home loan
When your fixed rate period ends, your RAMS fixed rate home loan will automatically roll onto a variable interest rate, unless you re-fix beforehand.
Once your loan has rolled onto a variable rate loan, you may be eligible to link an offset account*, maintaining a balance in the account could help reduce the interest on your new variable rate home loan.
+Subject to eligibility
Option 2: re-fix to a new fixed period, to lock in some certainty
You can apply* to re-fix up to 2 weeks before your fixed term ends:
- You may be able to do this in myRAMS. Sign into myRAMS and select your home loan to check if you are eligible to re-fix online.
- Prefer to re-fix over the phone? Simply call 13 RAMS, that’s 13 7267, up to two weeks before your current fixed rate period ends.
- If your current fixed rate period ends in more than 2 weeks, you can’t re-fix yet, so sit back and relax.
+Subject to eligibility
Fixed Rates
Our fixed rates are available here, or alternatively view our Owner Occupier Rates at a Glance or Investor Rates at a Glance.
If you are an existing customer with a Self-Employed Product or Low Doc Product, please refer to page two of our our Owner Occupier Rates at a Glance or Investor Rates at a Glance.
Re-fix online
In the 14 days leading up to the end of your current fixed rate period, you can view/accept your available re-fix options online+.
Option 3: split or fix your loan later
Get the benefits of both a fixed rate and variable rate. You can apply* to re-fix a portion of your loan balance by calling 13 RAMS, that’s 13 7267.
+Subject to eligibility
Which loan type is right for you?
Fixed Rate loans
- Predictable repayments with interest rates locked in for your fixed loan term.
- Up to $30K in extra repayments over the full term of your fixed rate with no break costs*, helping to pay off your loan faster.
- The ability to redraw any additional repayments if you need to (minimum redraw amount of $1,000).
Variable Rate loans
- The option of an offset to help reduce the amount of interest you’re charged. (Conditions apply)#.
- Get ahead on your home loan with no cap on extra repayments.
- The ability to redraw money from your additional repayments when you need to cover something unexpected.
Split loans
- A split of your choice based on your needs.
- Unlimited extra repayments on the variable part of your loan.
Preparing for change
There are a few things you could still do while on your fixed rate to help you manage your finances when it expires:
Consider your budget
Get to know the impact of potential changing interest rates on your repayments if you choose to re-fix or move to a variable loan at expiry with the RAMS repayment calculator. See below for some of our other calculators.
Get ahead on your loan now
Make up to $30K in extra repayments over the full term of your fixed rate loan to help reduce your overall balance with no break costs*.
Understand how we can help
We’d be happy to chat about ways we might be able to help once your fixed rate loan term expires. Simply call 13 RAMS, that’s 13 7267.
Frequently Asked Questions
For more information see our Frequently Asked Questions.
Additional help
Reducing your repayments
Did you know you may be able to:
• Reduce your minimum repayments
• Pause your repayments
• Change to Interest Only repayments**.
If eligible, you may end up paying more interest over the life of your loan
Financial difficulty?
We’re here to help you.
If less income, illness, natural disaster or anything else is making it hard to meet your repayments, the sooner you tell us, the earlier we could help. Financial hardship arrangement info only stays on your credit report for one year after the arrangement ends, as long as you meet the revised repayments.
FAQs - Fixed rate expiry
Disclaimer:
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.
§Closed on national and NSW state public holidays. Fixing line open between 8:30am – 5:30pm (AEST), Monday-Friday only.
#Offset facility is only available on eligible Home Loans. Not available to company or trust borrowers, or while the home loan interest rate is fixed.
*If at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type, then a break cost may apply.
**Conditions apply. It’s important to understand that interest rates for loans with Interest Only repayments are higher. Your repayments will increase at the end of the Interest Only term as the amount you’ve borrowed will need to be paid back in a shorter timeframe. This also means you’ll pay more interest over the life of the loan with an Interest Only repayment term, than if you’d opted to continue paying principal and interest. There’s a maximum of 5 years for Owner Occupied loans and 10 years for Investment loans on Interest Only repayments over the life of the loan. If you’ve had less than this, you may be able to extend the Interest Only repayment term, subject to conditions and a new assessment. You’ll need to start the process well in advance of your expiry date and provide details of your income, expenses and liabilities.
^The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.