Refinancing After Your
Fixed Rate Ends

What happens when your fixed rate ends?

When your fixed rate period expires, your loan does not simply continue on the same terms. In most cases, it reverts to your lender's standard variable rate. This revert rate is often significantly higher than the competitive variable rates available in the market.

The transition usually happens automatically. You will not receive a new contract or be asked to sign anything. Your repayments simply increase to reflect the new, higher rate. Many borrowers do not notice immediately, especially if they are on direct debit.

This is the point where lenders benefit most — and where many borrowers overpay without realising it.

The most common mistake

Doing nothing. A surprising number of borrowers let their loan roll onto the revert rate and never review it. This can cost hundreds of dollars per month in unnecessary repayments. Even if you decide to stay with your current lender, you should contact them and negotiate a better rate. Most lenders would rather offer you a discount than lose your business to a competitor.

Your three options

When your fixed rate ends, you have three main paths:

• Stay and negotiate — call your current lender and ask for a rate reduction. Many lenders will match or come close to competitive rates if you ask
• Refinance to a new lender — if your current lender cannot match the market, switching to a new lender may save you significantly
• Restructure your loan — you may want to split your loan between fixed and variable, extend or shorten the term, or access equity for other purposes

Could you save by switching?

If your revert rate is even 0.5 to 1 percentage point higher than what is available elsewhere, the savings from switching can be substantial. On a $500,000 loan, a 1 percentage point reduction could save around $300 to $400 per month.

Read our full refinancing guide for Australia to understand the process, costs, and how to compare your options.

Fixed vs variable in 2026

Once your fixed rate ends, you will need to decide whether to refix, go variable, or split. Variable rates offer more flexibility — unlimited extra repayments, offset accounts, and no break costs if you want to switch again later. Fixed rates offer repayment certainty. Many borrowers are opting for a split loan to get the benefits of both. Read our detailed comparison of fixed versus variable home loans in 2026.

Frequently asked questions