What Happens When You Fix Your Home Loan at the Wrong Time
Fixing your interest rate can offer peace of mind—but what if you lock in at the wrong time?
Let’s look at a real-world scenario that highlights why timing matters and why working with the right advisor can save you thousands.
Meet Sarah — First Home Buyer in Melbourne
In August 2023, Sarah purchased her first home. Concerned about ongoing rate hikes from the Reserve Bank of Australia (RBA), she decided to play it safe and fixed her $500,000 loan at 6.29% for three years.
At the time, rates had been climbing rapidly, and many borrowers feared they’d continue rising. But hindsight paints a different picture.
Fast Forward to July 2025
While the RBA paused its cash rate hikes in late 2024, inflation has since cooled—and lenders have started cutting fixed rates.
As of now, new 3-year fixed rates are around 4.89%.
That’s a difference of 1.4%, which means Sarah is paying around $7,000 more per year than she would if she fixed her loan today.
Over the remaining two years of her fixed term, that’s $14,000 in potential overspend—money that could’ve gone toward savings, offsetting her loan, or even investing elsewhere.
What Went Wrong?
Sarah made a common mistake: she tried to time the market without a clear strategy.
Here’s where things fell apart:
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She locked in at peak panic, reacting emotionally rather than strategically
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She didn’t explore alternative structures, like split loans or shorter fixed terms
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She didn’t seek advice on how future rate cycles could play out
Instead of future-proofing her loan, she locked herself into an inflexible rate that no longer suits the current market.
What Could She Have Done Differently?
A smarter approach would have been:
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Splitting the loan between fixed and variable to hedge her risk
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Choosing a shorter fixed term with flexibility to review and refinance sooner
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Working with a broker who tracks interest rate trends and lender offers across the market
This would have allowed her to stay protected while still positioning herself to benefit from future rate drops.
Don’t Guess. Don’t Gamble. Get a Loan Strategy That Works.
The home loan market moves quickly—and mistakes like Sarah’s are more common than you think.
At SW Global Finance, we take a strategic view of your loan, helping you:
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Understand the full range of fixed and variable options
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Compare rates and structures across 30+ lenders
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Build a plan that works for both today’s rates and tomorrow’s changes
Whether you’re fixing, refinancing, or buying your first home, let’s design a loan strategy that’s built around your goals—not just the headlines.
Call/WhatsApp: +84 96 275 92 07
Email: support@sw-globalfinance.com.au