When your fixed rate ends, your home loan usually rolls onto your lender’s variable rate for that loan, often called the revert rate. Your repayments change from the next repayment date. You don’t have to accept the revert rate. You can re-fix, ask your lender for a lower variable rate, or refinance to another lender.
This article is general information only and does not take your personal circumstances into account. It is not financial advice or a loan approval.
What happens on the day my fixed rate ends?
Unless you have arranged something else, the loan automatically switches to the variable rate set out in your loan contract. Most lenders write to you before the fixed term ends, telling you the rate the loan will move to and your new repayment amount. Your loan balance, term and security stay the same. Only the interest rate and repayments change.
What is a revert rate, and why does it matter?
The revert rate is the variable rate your lender applies once the fixed period finishes. It is not always the same as the rate the lender advertises to new customers. Lenders often offer sharper rates to attract new borrowers than they apply to existing loans. So it is worth checking your revert rate against what is available before your fixed term ends.
What are my options when my fixed rate ends?
There are four common paths. Each suits different goals, so compare them on total cost and features, not on the headline rate alone.
- Let it roll to variable. You need to do nothing, and a variable loan usually allows extra repayments and an offset account. The trade-off is that you may stay on a higher revert rate than you need to.
- Re-fix with your current lender. This gives you repayment certainty for a new term, but limits extra repayments and can mean break costs if you change the loan before the new term ends.
- Ask your current lender for a better rate. Moneysmart notes that a lender may reduce the rate on your current loan to keep your business, especially if you have at least 20% equity.
- Refinance to a new lender. This can make sense if another lender offers a lower rate or better features, after you add up the costs of switching.
Do I pay break costs when my fixed rate ends?
Break costs apply when you repay or change a fixed rate loan during the fixed term. When the fixed term has ended and the loan has moved to variable, break costs for that fixed period no longer apply. That is why the end of a fixed term is often the simplest time to review or refinance. Confirm the exact end date with your lender first.
What does it cost to refinance?
Moneysmart lists the main costs to check before switching lenders:
- A discharge fee to close your current loan
- An application fee for the new loan
- Lenders mortgage insurance (LMI) if you have less than 20% equity, which can outweigh the savings from a lower rate
- Any switching fee if you stay with your lender but move to a different loan product
Some lenders also charge valuation or settlement fees, so ask for a full list before you decide.
Will I need to qualify again to refinance?
Yes. A new lender will assess your income, expenses and debts again. Under APRA’s guidance, lenders test whether you can afford the loan at an interest rate at least 3 percentage points above the loan’s actual rate. APRA kept this buffer at 3 percentage points in May 2026. If your income has dropped or your debts have grown since you first borrowed, refinancing may be harder, and asking your current lender for a better rate may be the more practical option.
When should I start planning?
Start a few months before your fixed term ends. That gives you time to find your revert rate, compare offers, and complete a refinance if you choose one, so the new loan can be ready close to the end date. A refinance takes time to assess and settle, and the timing varies by lender.
How SB Finance can help
We compare your revert rate against home loan options across 40+ lenders, and look at the costs of staying, re-fixing or switching, so you can choose with the full picture. For home loans, there is no cost to you for our brokering service, as we are paid by the lender when your loan settles. Learn more about refinancing home loans, read our guide to fixed vs variable home loans, or book a free consultation.
Fixed rate ending: frequently asked questions
Will my lender tell me when my fixed rate is ending?
Lenders usually write to you before the fixed term ends with the new rate and repayment. If you are unsure of your end date, check your loan contract or online banking, or call your lender.
Can I split my loan between fixed and variable?
Many lenders allow a split loan, where part of the balance is fixed and part is variable. This gives some repayment certainty while keeping some flexibility for extra repayments.
Can I refinance before my fixed rate ends?
You can, but you may have to pay break costs if you leave during the fixed term. Ask your lender for a break cost quote before deciding.
Does reviewing my options affect my credit score?
Talking to a broker or comparing rates does not affect your credit file. A formal loan application usually results in a credit enquiry.
Sources: Moneysmart, Switching home loans; APRA, macroprudential settings update, 28 May 2026. Rates and fees vary by lender. Comparison rates and full fees apply.
