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Fixed Rate Expiring? Facing High Interest Rates?

Published: 11 March 2025

Fixed Rate Expiring? Facing High Interest Rates? Here’s What You Can Do!

If your fixed-rate home loan is about to expire, you might be in for a shock—going from historically low rates (around 2%) to standard variable rates exceeding 7%. But don’t panic! You have options to secure a better deal and reduce your mortgage burden. Here are four solutions to help you navigate this transition:

1. Rate Review: Negotiate a Better Deal with Your Bank

The first step is to request a Rate Review from your current lender. You can ask them to match their latest rates or offer a discount based on competitor rates.

✅ Why it works:

  • It’s the quickest and easiest option
  • No need to switch banks or refinance
  • Mortgage brokers often have stronger bargaining power to secure additional rate discounts

💡 Tip: While this is a great first step, most banks won’t offer the lowest possible rate, so exploring other options is recommended.

2. Refinance: Switch to a New Lender for Better Rates & Cash Rebates

If you have strong borrowing power, consider refinancing to another bank. This could help you:

  • ✔ Get a lower interest rate
  • ✔ Receive a cashback offer (up to AUD 4,288 from some lenders!)
  • ✔ Reduce monthly repayments by extending the loan term, improving cash flow

💡 Tip: Start the refinancing process before your fixed term ends to allow enough time for approvals and planning.

3. Streamline Refinance: Lower Borrowing Requirements

If your borrowing power is limited, some major banks offer Streamline Refinance options, which have reduced assessment rates (e.g., from 3% to 1%). This makes it easier to qualify for refinancing even if your income is lower.

✅ Best for:

Borrowers who may struggle to meet standard lending criteria but still want to switch to a better deal.

💡 Tip: Consult a mortgage broker to check eligibility and find the best Streamline Refinance options.

4. Easy Refinance: No Income Proof Required

Some lenders offer Easy Refinance, which allows borrowers to refinance without providing proof of income. Instead, they assess:

  • ✔ Your past 12 months’ repayment history
  • ✔ Whether the new repayment amount is lower than your current one

✅ Best for:

Borrowers facing high interest rates but limited income who may not qualify for standard refinancing.

💡 Tip: If you’re struggling with loan approval due to income constraints, this could be an excellent alternative.

Visit our website for more details: openmortgage.au