What Happens When Your Fixed Rate Ends?
On the day your fixed term expires, the loan automatically converts to a variable rate chosen by your lender, usually called the revert rate. You do not have to sign anything for this to happen, and that is the problem. The revert rate is commonly higher than the variable rate the same lender advertises to new customers, so a borrower who does nothing can end up paying more than a stranger walking in off the street.
The good news is that expiry is also the cheapest moment to move. Once the fixed term has ended there is no break cost, so every option is open.
What Are Your Options When a Fixed Rate Expires?
1. Do nothing and revert
The loan rolls to the revert rate. This is the default and usually the most expensive outcome.
2. Re-fix with your current lender
Lenders typically send a re-fix offer a few weeks before expiry. It is convenient, but the rate offered is not necessarily the lender's sharpest and is rarely compared against the wider market.
3. Ask your lender to reprice the variable rate
A pricing request asks your lender to match what it gives new customers. It involves no application and no credit enquiry. See repricing vs refinancing for how to do it well.
4. Refinance to another lender
If the reprice still leaves you above market pricing, switching lenders captures the gap. A refinance usually takes two to four weeks, which is why starting early matters.
Most people call me the week after the expiry letter arrives, already on the revert rate. The better call is three months before. That leaves time to get a reprice offer from your current lender, compare it properly against 50+ lenders, and have a new loan ready to settle within days of the fixed term ending, so you never pay the revert rate at all.
When Should You Start Looking Before the Fixed Term Ends?
About 90 days out. A practical timeline:
- 90 days before: confirm your expiry date, balance and the revert rate your lender will apply. Run the fixed rate expiry calculator to see the new repayment.
- 60 to 75 days before: get a free rate review. We request a reprice from your current lender and compare it against the market at the same time.
- 45 to 60 days before: if switching wins, lodge the application. Approval and valuation happen in this window.
- Expiry week: the new loan settles on or just after the expiry date, so no break cost applies and the revert rate is avoided.
How Much Will Repayments Rise When the Fixed Rate Ends?
It depends on the gap between your fixed rate and the revert rate. As a guide, every 1.00% of rate on a $600,000 loan over 25 years is roughly $360 a month, so a loan fixed two points below its revert rate faces an increase in the order of $700 or more a month. The fixed rate expiry calculator gives your exact figure in a few seconds.
Can You Refinance Before a Fixed Rate Ends?
Yes, but leaving early can trigger a break cost, which your lender must quote on request. The usual approach is to do all the work before expiry and time settlement for the expiry date itself. Some lenders allow a rate to be locked ahead of settlement for a fee, which protects you if rates move while the refinance is in progress.
Should You Fix Again or Go Variable?
There is no universally right answer and nobody can reliably pick rate movements. Fixing buys certainty of repayments and usually limits extra repayments and offset. Variable keeps flexibility and full offset. Many borrowers split the loan. The right mix depends on your buffer, your plans for the property and how much repayment certainty matters to you. More detail in fixed vs variable rate home loans.
General information only. It does not take your objectives, financial situation or needs into account. All lending is subject to lender assessment and approval. Fees and figures are typical ranges at 14 November 2026 and can change. Lend & Loan, Australian Credit Licence 511092.
