Key takeaways:
Your fixed home loan usually reverts to a variable rate when the fixed term ends, which could increase or decrease your mortgage repayments.
You have four main options when your fixed rate ends: move to a variable rate, re-fix, split your loan or refinance with another lender.
Start reviewing your home loan around three months before expiry to estimate repayments, compare rates and prepare your budget.
You can ask your current lender for a rate review, although discounts aren't guaranteed and depend on lender policies.
Refinancing could reduce your repayments or provide different loan features, but switching costs, eligibility and total interest costs should be considered.
When your fixed home loan rate ends, your loan will usually revert to your lender's variable rate, which could change your mortgage repayments.
On 3 November 2026, the Reserve Bank of Australia (RBA) raised the cash rate to 4.85%, effective 4 November 2026. With the cash rate now higher, reviewing your home loan before your fixed term expires could help you prepare for repayment changes.
Whether you stay with your current lender, refix your rate or refinance, understanding your options can help you make an informed decision.
What happens when your fixed rate ends?
When your fixed home loan rate ends, your loan will usually switch to your lender's variable interest rate, known as the revert rate, unless you arrange another option.
Your revert rate depends on your lender and loan agreement. It may include a discount or differ from the rates advertised to new customers.
Check your loan agreement, latest statement or banking app to confirm your fixed rate expiry date and what rate applies next.
Once the fixed period has ended, a fixed-rate break fee generally won’t apply. Other discharge, application, valuation or switching fees may still apply. However, switching early may trigger fees. Learn more about fixed-rate break costs.
You might also be interested in: Switching from interest-only to principal and interest
How much could your repayments change?
Your mortgage repayments could rise or fall depending on your new interest rate, outstanding loan balance, remaining loan term and repayment structure.
For example, if you have a $600,000 home loan with 25 years remaining, moving from a fixed rate of 2.19% p.a. to a variable rate of 6.75% p.a. could affect your repayments as follows:
Loan details | Fixed rate | Variable revert rate |
|---|---|---|
Outstanding loan balance | $600,000 | $600,000 |
Remaining loan term | 25 years | 25 years |
Interest rate | 2.19% p.a. | 6.75% p.a. |
Monthly repayments | $2,599 | $4,145 |
That's an estimated $1,546 increase in monthly repayments, or around $18,552 more per year.
Important note: Illustrative example only, based on monthly principal-and-interest repayments over 25 years, with no fees or changes to the loan balance. It does not represent an available loan product, credit quote or offer. Actual repayments depend on your loan terms and lender.
Use Aussie's Mortgage Repayment Calculator to estimate how a rate change could affect your repayments.
What are your options when your fixed rate ends?
When your fixed home loan rate ends, you can move to a variable rate, re-fix your loan, split your loan or refinance with another lender.
Each option has different benefits, costs and restrictions. The right choice depends on your budget, repayment preferences and financial circumstances.
Option | What it means | What to consider |
|---|---|---|
Revert to variable | Move to your lender's applicable variable interest rate. | Your rate and repayments may change. Features such as offset accounts, redraw and extra repayments may be available. |
Re-fix your loan | Lock in a new fixed rate for an agreed period. | Offers repayment certainty during the fixed term, but limits on extra repayments and early break costs may apply. |
Split your loan | Divide your loan into fixed and variable portions. | A split home loan combines fixed repayments on one portion with potential flexibility on the other, subject to lender conditions. |
Refinance | Replace your existing loan with a new loan from another lender. | Compare rates, fees and features. Switching costs may apply, and approval is subject to the new lender's criteria. |
According to ASIC MoneySmart, fixed rates provide certainty over repayments during the agreed term, while variable rates may offer more flexibility and potential savings if interest rates fall.
However, variable repayments may also increase when rates rise.
Before deciding, compare the total cost of each option, including interest rates, fees, loan features and any restrictions on extra repayments.
Consider whether you need predictable repayments or the flexibility to change your loan.
You might also be interested in: Types of home loans in Australia: How to compare your options
How to prepare before your fixed rate ends: A 3-month checklist
If your fixed home loan rate is ending soon, consider reviewing your options several months before expiry. Three months is a useful planning point, not a lender deadline. This time would allow you to better assess your budget, compare rates and prepare for potential repayment changes.
1. Three months before: Review your loan and budget
Start by checking your loan details and estimating your repayments at different interest rates.
Check your loan details: Confirm your fixed rate expiry date, outstanding balance and remaining loan term using your loan agreement, lender's app or latest statement.
Calculate your potential repayments: Use a mortgage repayment calculator to estimate how a higher or lower interest rate could affect your monthly repayments.
Review your budget: Compare your income, expenses and existing debts to assess how a repayment increase could affect your cash flow.
2. Two months before: Compare home loan options
Contact your lender to confirm your variable revert rate, available fixed rates, loan features and any fees associated with changing your loan. You can also speak with an Aussie Broker to compare your current lender's offer with home loan options from other lenders, including interest rates, fees and features.
3. Final weeks: Decide and arrange your next steps
Once you've compared your options, choose a loan arrangement that suits your budget and repayment preferences. Confirm any documents or instructions your lender requires. If you're refinancing, allow time for the new lender to assess your application and arrange settlement.
Approval and settlement timeframes vary, so it's worth starting early.
Other ways to manage your mortgage repayments
Alongside reviewing your home loan, consider whether these options could help reduce your interest costs:
Use an offset account: If your loan has a 100% offset account, the balance reduces the amount on which interest is calculated. For example, keeping $20,000 in an eligible offset account against a loan with a 6.5% p.a. interest rate could save approximately $1,300 in interest over one year, assuming the balance and rate remain unchanged. This excludes account fees and assumes the offset balance doesn't exceed the loan balance.
Make extra repayments: Paying more than your minimum repayment can reduce your loan balance and total interest costs. However, fixed-rate loans may limit extra repayments or charge break costs if you exceed the permitted amount. Check your loan conditions first.
Use Aussie's Extra Repayments Calculator to estimate how additional repayments could affect your interest costs and loan term.
You might also be interested in: Extra repayments: How to pay off your home loan sooner
Can you negotiate with your current lender?
Yes, you can ask your lender to review your interest rate before your fixed term ends.
Your lender may offer a different rate or retention offer, depending on its policies and your loan details, although approval depends on their policies and your loan details.
Before requesting a rate review, check your fixed rate expiry date, outstanding loan balance and comparable home loan rates. This can help you negotiate and assess whether your lender's offer is competitive.
Advantages of staying with your lender | Limitations of staying with your lender |
|---|---|
Less paperwork: Changing rates with your existing lender may be simpler than refinancing. | No guaranteed discount: Your lender may decline your request or offer a smaller rate reduction than expected. |
Lower switching costs: You may avoid discharge and new-loan establishment fees, although other charges could apply. | Potentially better offers elsewhere: Other lenders may offer more competitive rates, fees or features. |
Keep existing features: You may be able to retain your offset account, redraw facility or other loan features, depending on your loan terms. | Existing restrictions: Your current loan conditions may still apply, even if your interest rate changes. |
Before accepting a revised rate, review the terms, fees and loan features to understand what you're signing.
You might also be interested in: Negotiating a home purchase: What first-home buyers and upgraders need to know
Is refinancing worth it when your fixed rate ends?
Refinancing when your fixed rate ends could help you secure a lower interest rate or access different loan features. However, the benefits must outweigh the costs of switching lenders.
What should you consider before refinancing?
Before refinancing your home loan, compare:
Interest rates and features: Check interest rates, ongoing fees, offset accounts, redraw facilities and extra repayment options.
Switching costs: Factor in discharge, application, establishment and valuation fees, plus any lender's mortgage insurance (LMI) that may apply. (LMI) that may apply.
Lender eligibility: A new lender will assess your income, expenses, debts and credit history before approving your application.
Property valuation and LVR: Your property's valuation affects your loan-to-value ratio (LVR), which can influence loan eligibility and LMI requirements.
Loan term: Extending your loan term may lower monthly repayments but increase the total interest paid.
How much could refinancing save you?
Consider Maria, who has a $500,000 home loan with 25 years remaining. When her fixed rate expires, she compares her lender's variable rate of 6.7% p.a. with a refinancing option at 6.1% p.a.
Loan details | Existing loan | Refinanced loan |
|---|---|---|
Outstanding loan balance | $500,000 | $500,000 |
Remaining loan term | 25 years | 25 years |
Variable interest rate | 6.7% p.a. | 6.1% p.a. |
Monthly principal-and-interest repayment | $3,439 | $3,252 |
In this example, refinancing could reduce Maria's monthly repayments by approximately $187, or $2,240 per year, before fees and switching costs.
Important note: Illustrative example only, based on a $500,000 loan over 25 years with monthly principal-and-interest repayments, unchanged interest rates and no fees. It does not represent an available loan product, credit quote or offer. Actual repayments depend on lender pricing, loan terms and individual circumstances.
Remember, lower monthly repayments don't always mean lower overall costs. Compare interest savings against switching fees and consider how a longer loan term could affect the total interest paid.
What if you can't refinance?
If you can't refinance when your fixed rate ends, you may still be able to request a rate review or discuss alternative loan arrangements with your current lender.
Refinancing can be harder if your income has fallen, debts have increased, or your credit history doesn't meet a new lender's criteria. A lower property valuation may also increase your loan-to-value ratio (LVR), limiting your refinancing options.
The RBA's November 2026 Statement on Monetary Policy reported that national housing prices in September were 4.7% below their March peak. However, property values vary by location, so individual valuations may be affected differently.
If you're struggling to meet your mortgage repayments, contact your lender's hardship team early to discuss available assistance. Financial hardship support is intended for borrowers experiencing repayment difficulties, rather than those who are unable to refinance.
What are your options if you can't refinance?
Request a rate review: Ask your lender whether a lower interest rate or different loan arrangement is available. Any changes depend on your lender's policies and loan terms.
Ask about financial hardship assistance: If you're struggling with repayments, contact your lender's hardship team early. They can assess your circumstances and explain available support, which may include temporary repayment arrangements.
Consider interest-only repayments: Your lender may allow a temporary interest-only period, subject to approval. This could reduce repayments initially but generally increases total interest costs and may result in higher repayments later.
Review your household budget: Check your debts, regular expenses and cash flow to identify possible adjustments and how much you can afford to put towards repayments.
If you're having trouble meeting repayments, contact your lender's hardship team as early as possible, ideally before missing a payment.
Is your fixed rate ending? Start planning now
Don't wait until your fixed home loan rate expires to review your options.
Understanding how your repayments could change and comparing available home loan offers early can help you decide with confidence.
An Aussie Broker can help you review your existing loan, compare interest rates, fees and features, and understand your next steps before your fixed term ends.
