They say all good things come to an end. A summer vacation, off-key karaoke singers, and a fixed interest rate on your home loan. If your fixed rate term is nearing an end, now’s the time to start planning.
‘Be prepared’ is every boy scout’s motto, and it’s worth taking a leaf out of their book. Taking steps to prepare for your current fixed rate to end can smooth the transition to a new repayment amount or variable rate.
Here are three ways to set yourself up for the future.
Pay down more of your mortgage today.
The best defence is a strong offence, right? If you’ve got some spare cash, consider channeling it into your loan. It can help you save a bundle on interest further down the line.
Be mindful though, some home loans have restrictions on how much extra you can pay on a fixed rate. ME fixed rate home loans let you make up to $30,000 in extra repayments per fixed rate period at no extra charge.
The more you repay today, the less you pay in interest tomorrow.
Blitz the budget to find extra cash.
Full marks if you’re already budgeting. If you’re not, now could be a great time to start.
Beat the squeeze before your fixed rate ends with our top budget tips to help you save on household expenses. Use the extra cash to pay more off your home loan or grow a war chest of savings to help manage your new loan repayments when your fixed rate ends.
Not sure where to start? Head to our Budget Planner and let it do the sums for you.
Crunch the numbers. Know where you’re heading.
Jump onto our home loan repayments calculator to get a clear picture on how much you can save by paying a bit extra into your home loan.
Play around with the numbers to find the extra repayments that suit your budget. It’s an easy way to see how even small extra payments, or a more frequent repayment schedule can have a big impact on your loan over time.
We’re here to help.
Goodbyes are never easy, and if you’re unsure about what happens when it’s time to farewell your fixed rate, we’re here to help.
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.