If you fixed your home loan a few years ago, there's a good chance your rate was well below what's on offer now. When that fixed period ends, your repayments can jump overnight.
The worst thing you can do is nothing. Here's a simple plan.
What happens when a fixed rate ends
At the end of the fixed term, your lender automatically moves your loan to a variable rate, called the revert rate. This is often the lender's standard variable rate, which can be noticeably higher than the rates they advertise to new customers.
Lenders usually write to you about 30 to 60 days beforehand. Don't wait for that letter.
How big is the jump?
Say you fixed $600,000 at 5.99% and your loan reverts to 6.99% with 27 years left.
- Fixed repayment: about $3,740 a month
- Revert repayment: about $4,123 a month
- Increase: roughly $383 a month, or about $4,600 a year
If you'd fixed earlier at a lower rate, the shock is bigger.
Your plan, 90 days out
Step 1: Find your revert rate
Call your lender or check your app. Ask exactly what rate you'll move to and when.
Step 2: Ask your lender for their best offer
Many lenders will offer a lower rate to keep you, but often only if you ask. Get it in writing.
Step 3: Compare the market
A broker can compare that offer with other lenders, including any cashback deals.
Step 4: Decide fixed, variable or split
With the cash rate now at 4.60% and some economists expecting another rise in November 2026, there's no obviously right answer. The options:
- Variable: flexibility, offset account, unlimited extra repayments. Repayments go up if rates rise.
- Fixed: certainty for 1 to 5 years. Fixed rates have already risen in anticipation of hikes. Limited extra repayments and break costs if you leave.
- Split: part fixed, part variable. Some certainty, some flexibility.
Read more in fixed or variable in a rising rate market.
Step 5: Apply early
If refinancing to another lender, apply 6 to 8 weeks before your fixed term ends. That way you can settle on the day it expires, with no break costs.
What if you can't refinance?
Some borrowers find they don't qualify with a new lender because lenders test at a rate about 3% higher than the actual rate. If that's you:
- Negotiate hard with your current lender. You don't need to pass a new serviceability test to get a rate reduction from your own bank.
- Ask about a product switch to a cheaper variable or fixed product with the same lender.
- If you're struggling with repayments, talk to your lender's hardship team early. See what to do if you're struggling with mortgage repayments.
Prepare your budget for the new repayment
Even with a good rate, your repayment is likely higher than your old fixed rate. A few months before rollover:
- Start paying the expected new amount into savings or your offset, so the change doesn't hurt
- Review subscriptions, insurance and energy plans
- Consider whether extending your loan term temporarily makes sense (it costs more long term)
Frequently asked questions
Can I refinance before my fixed term ends?
Yes, but you may pay break costs. If rates have risen since you fixed, break costs may be small. Ask your lender for a quote.
Will my lender automatically give me a good rate?
Not usually. The revert rate is often higher than what you could negotiate. Always ask.
Should I fix again?
It depends on your need for certainty versus flexibility. Many borrowers split their loan to balance both.
Fixed rate ending in the next six months? Call Finfident on 0424 545 654. We'll compare your lender's retention offer with the market so you don't overpay.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.