Fixed rate ending? See your new repayment at the revert rate, the monthly jump, and what refinancing could save instead. Instant results, no sign-up.
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Check Your Eligibility in 60 Seconds ๐ Call John on 02 8046 3933When your fixed term ends, your loan automatically rolls onto your lender's revert rate, a variable rate the lender sets, unless you act before the rollover date. Revert rates are typically higher than the competitive rates the same market offers to new borrowers, so doing nothing usually means paying more than you need to. Lenders rely on inertia: most borrowers receive the expiry letter, wince at the new repayment, and absorb it.
The jump can be large. On a $600,000 loan with 25 years remaining, paying principal and interest, rolling from a 5.50% fixed rate to a 7.50% revert rate lifts the monthly repayment from about $3,685 to about $4,434. That is roughly $750 a month more, close to $9,000 a year, for the same loan on the same property.
You have three options at expiry, all subject to assessment: negotiate a better variable rate with your current lender, re-fix with your current lender, or refinance to another lender. The calculator above shows what each path is worth in dollars per month, which is the number that actually matters for your budget.
The table below shows illustrative figures for a loan rolling off a 5.50% fixed rate onto a 7.50% revert rate, compared with refinancing to 6.00%, all principal and interest with 25 years remaining. Every figure comes from the same amortisation formula the calculator uses.
| Loan balance | On 5.50% fixed | At 7.50% revert | Extra per month | Refinanced at 6.00% | Revert vs refinance, per year |
|---|---|---|---|---|---|
| $500,000 | $3,070 /mo | $3,695 /mo | +$625 | $3,222 /mo | +$5,681 |
| $750,000 | $4,606 /mo | $5,542 /mo | +$937 | $4,832 /mo | +$8,522 |
| $1,000,000 | $6,141 /mo | $7,390 /mo | +$1,249 | $6,443 /mo | +$11,363 |
Illustrative only. Assumes principal and interest repayments, 25 years remaining, and the rates shown; your actual fixed, revert, and refinance rates will differ. Use the calculator above with your own numbers.
About 90 days before your fixed term ends. That gives you time to compare the market properly, lodge a refinance application if the numbers favour it, and settle on or just after the expiry date without spending a single day on the revert rate. A typical timeline looks like this:
If you are inside 30 days already, it is still worth moving. Even a month or two on the revert rate costs real money, but it is far cheaper than a year of it.
Yes, but exiting a fixed loan early can trigger break costs, and you should get the actual figure before deciding. Break costs compensate your lender for the difference between your fixed rate and the wholesale rates available for the remainder of your term. If market rates have risen since you fixed, break costs are often small or nil. If rates have fallen, they can run to thousands of dollars. Your current lender must quote the payout figure on request, and it changes daily, so get it in writing close to your decision date.
In practice, the cleanest path is usually to start the refinance 60 to 90 days early and time settlement for the expiry date itself. You get the preparation done ahead of time, pay no break costs, and skip the revert rate entirely. Where breaking early does stack up, the saving on the new rate has to outweigh the break cost over a reasonable horizon; that is a calculation worth doing properly rather than guessing. Our refinancing page covers the full process, costs, and timing.
The calculator uses the standard principal and interest amortisation formula: M = P x r(1+r)^n / ((1+r)^n - 1), where P is your loan balance, r is the annual rate divided by 12 and expressed as a decimal (annual / 12 / 100), and n is your remaining term in months (years x 12). It calculates your monthly repayment three times, at your fixed rate, at the revert rate, and at the optional refinance rate, then shows the differences per month and per year.
Assumptions: repayments are monthly principal and interest over the remaining term you enter, the rate is constant over that term, and no fees, offset balances, or redraws are included. Inputs are kept within sensible bounds (balance $10,000 to $20,000,000, rates 0.1% to 15% p.a., term 1 to 40 years) and the calculator tells you if it has adjusted a value. All results are estimates only and general information, not credit advice; your lender calculates actual repayments under your loan contract.
These figures are estimates only and general information, not credit advice or an offer of credit. Actual repayments depend on your lender, your loan contract, and the rates available when your fixed term ends. Consider your own circumstances and seek advice before acting. Lend & Loan ACL 511092.