What Happens When Your Fixed Rate Expires? A Guide for Australian Borrowers
Fixed rates were popular in 2026 as the RBA lifted the cash rate to 4.60%. Plenty of borrowers locked in for peace of mind. Now the question is what happens on the day that fixed term ends.
What does your fixed rate expiry mean for your repayments?
What happens when your fixed rate ends
When your fixed term finishes, your lender moves you onto a variable rate. This is often called the revert rate. You do not need to do anything for this to happen. That is exactly why it catches people out.
The revert rate is often higher than the best variable rates on the market. Lenders know many borrowers will sit still. They price accordingly.
Your lender is required to send you a notice before the term ends. Do not ignore it. It is your window to act.
How big can the repayment jump be?
Here is a simple example. Say you owe $600,000 over 30 years.
At 4.90%, repayments are about $3,184 a month.
At 6.40%, repayments are about $3,753 a month.
That is roughly $569 more every month, or close to $6,800 a year.
This is an illustration only. Your numbers will differ. But it shows why a 1.5% gap matters on a large loan.
Your four options when the term ends
You are not stuck with the revert rate. Most borrowers have four choices.
Do nothing and revert to the lender's variable rate. Easy, but often the most expensive.
Ask your lender for a better variable rate. A short phone call can save real money. Our guide on how to negotiate a lower interest rate on your home loan shows you how.
Fix again, with your current lender or a new one. Handy if you want certainty. Read our guide on whether you should fix your home loan rate in 2026 before you decide.
Refinance to a different lender. This can unlock a sharper rate, and sometimes a cashback.
Start the process 90 days out
Do not wait for the last week. Start about three months before your fixed term ends.
Check the exact end date in your loan documents or online banking.
Find out your lender's current revert rate.
Ask what they can offer to keep you.
Compare it with rates from other lenders.
Work out your current loan balance and property value.
Refinancing takes time. Valuations, applications and approvals can take a few weeks. Starting early means you can move the day your fixed rate ends, not a month after.
Check for break costs and fees
If you leave a fixed loan early, you may pay break costs. These can be large when rates have moved. Once the term has ended, break costs no longer apply. That is the best time to switch.
Also look at the costs of moving. These can include discharge fees, application fees and settlement fees. Many lenders now waive some of these. Weigh them against the savings, not in isolation.
Should you fix again or go variable?
There is no single right answer. It depends on your budget and how much uncertainty you can handle.
Fix again if a rate rise would put real pressure on your budget.
Stay variable if you want flexibility, an offset account or the ability to make extra repayments.
Split your loan if you want a bit of both.
Many fixed loans limit extra repayments and do not include an offset. If those features matter to you, a variable or split loan may suit better.
Can you still refinance if your situation has changed?
Maybe. Lenders reassess you from scratch when you refinance. They look at your income, your debts and your spending, and they apply a serviceability buffer. If rates have risen since you first borrowed, your borrowing power may be lower than it was. Our guide on mortgage prison in Australia explains what this means if you feel stuck with your current lender.
Things that can help:
Pay down credit cards and cancel unused limits.
Avoid new debt before you apply.
Keep your bank statements clean for a few months.
Check your credit report for errors.
Common mistakes to avoid
Ignoring the notice from your lender.
Assuming the revert rate is competitive.
Waiting until the last week to compare options.
Choosing a lender on the headline rate alone.
Forgetting to check what features the new loan includes.
How a broker can help
A broker can compare rates across a wide panel of lenders and handle the paperwork. We can also check what your current lender is likely to offer before you commit to anything. There is no pressure to switch. If staying put is the best move, we will tell you.
Ready to Sort Your Fixed Rate Expiry?
If your fixed rate ends in the next six months, now is the time to look at your options. Get in touch and we will run the numbers with you.
📞 +61 485 981 099