If your fixed rate home loan is coming to an end, you have a decision to make and a limited window to make it. What happens next will affect your repayments, possibly by hundreds of dollars a month. This is not the time to do nothing.
Here is what you need to know about your options when your fixed rate expires, and how to work out the right move for your situation.
What happens when your fixed rate ends
When your fixed rate period finishes, your loan does not stop. It rolls automatically onto your lender's standard variable rate, often called the revert rate. This rate is set by your lender and is typically not their most competitive offering.
In most cases, the revert rate is higher than comparable variable rates available in the current market. Your bank will not call you to point this out. It is just the default, and plenty of borrowers stay on it without realising they have better options.
The key question is simple: what rate will you be on the day after your fixed period ends, and is that rate reasonable?
Your four options
1. Roll onto the variable rate and stay put. If your lender's revert rate is competitive and you are happy with the flexibility that comes with variable, this can be a perfectly reasonable choice. But you should confirm the rate is actually competitive before accepting it, not assume it is.
2. Refix with your current lender. If you want the certainty of knowing exactly what your repayments will be, refixing is worth considering. Lenders typically offer fixed terms from one to five years. The downside is that you lock in today's rate, which may not look great if rates fall. You also lose access to features like offset accounts on most fixed rate products.
3. Split your loan. A split loan divides your mortgage into a fixed portion and a variable portion. You get some repayment certainty on the fixed part, while the variable portion gives you access to an offset account and the flexibility to make extra repayments. This suits borrowers who want a balance of stability and flexibility.
4. Refinance to a new lender. If your current lender is not offering a competitive rate, this is often the most impactful move. Lenders price new customers better than existing ones. Refinancing to a lender competing for your business can meaningfully reduce your interest costs. A broker can compare rates across a panel of lenders and find one that fits your situation.
Why the revert rate matters more than people realise
When borrowers take out a fixed rate loan, they focus on the fixed rate, which makes sense. But the revert rate, the rate you land on at the end of the fixed period, is just as important and gets far less attention.
If you took out a two or three year fixed loan in 2022 or 2023, the rates you locked in were relatively low. Rolling onto your lender's revert rate in today's higher rate environment could mean a significant jump in your repayments.
Knowing your revert rate before your fixed period ends gives you time to act. You can find it in your loan contract or by calling your lender directly.
When should you start planning?
Three months before your fixed rate expires is the right time to start. That gives you enough time to compare options, get a formal assessment if you want to refinance, and have everything settled before the automatic rollover kicks in.
If you wait until the month your loan expires, you are limiting your options and potentially leaving yourself on a higher rate while paperwork catches up.
Your lender will typically write to you six to eight weeks before expiry with details of your new repayment amount and the options they offer. Read that letter carefully. It is a starting point, not a final answer.
What a broker can do for you at this point
A broker's job at fixed rate expiry is to give you a clear read on where you stand. We check your revert rate against the current market, look at what is available from other lenders, and tell you honestly whether it is worth switching or whether staying put makes sense.
You do not pay for that assessment. We are paid by the lender if and when a loan settles, so there is no charge to you for the conversation or the comparison.
If your fixed rate is ending in the next three to six months, now is a good time to have that conversation. Book a free call with Matt or Jess and we will check your rate, walk through your options, and give you a straight answer on what makes sense.
