LendChat/Guides/Fixed rate expiring

For fixed-rate borrowers

Your fixed rate
is ending.

When a fixed-rate loan expires, most lenders roll it onto their standard variable rate automatically — often the least competitive rate they offer. A quick check before it happens can avoid a big jump in what you pay each month.

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Revert rate snapshot

What happens if you do nothing.

Loan balance

Your fixed rate

Lender's revert rate

Now

$1,050

per month

After revert

$3,112

per month

That's $2,063 more a month — $24,750 more a year, if you let it revert.

Illustrative only, based on principal-and-interest repayments. Your actual revert rate, fixed rate and options depend on your lender and circumstances.

Why this matters right now

A wave of low fixed rates is rolling off.

A huge number of Australians locked in a fixed rate during 2020–2022, when the cash rate was near zero and two-point-something fixed deals were everywhere. Most fixed terms run two to five years — which means a large share of those loans are reaching the end of their fixed period through 2025 and 2026.

Here's the part most people don't expect: your lender doesn't ring you up with a better deal when your fixed term ends. Unless you tell them otherwise, your loan automatically rolls onto their standard variable rate — usually the highest, least competitive rate on their book, reserved for borrowers who never got around to switching.

With the cash rate holding well above the emergency lows of 2020–2021 and no guaranteed relief on the horizon, reverting isn't a neutral default — it's often the most expensive option on the table. The good news: you have choices, and they're worth comparing well before your fixed term actually ends.

Your four options

What you can actually do
before your rate ends.

You don't have to accept the revert rate. Here's every path, from least to most effort.

default

Do nothing — revert

Your loan rolls onto your lender's standard variable rate automatically. No paperwork, no effort — and usually the most expensive of your options.

Rarely the best move

most common

Refinance to a new lender

Switch your loan elsewhere for a sharper rate, and often a cashback offer that covers most of the switching cost. A broker compares real, qualifying rates across lenders — not just advertised ones.

Usually the biggest saving

quick win

Ask your current lender to match

Lenders would rather retain you than lose you — a call asking for a 'retention rate' sometimes works, especially if you're ready to walk. It rarely beats a genuine refinance, but it's a fast first step.

Worth trying, capped upside

for certainty

Re-fix at today's rate

Lock in a new fixed term instead of going variable. Trades flexibility for certainty over your repayments — useful if rates might move against you, but you lose access to extra repayments and offset benefits on most fixed loans.

Certainty over flexibility

Timing it right

When to start, so you never revert.

The whole goal is timing your next move to land exactly when your fixed term ends — not weeks or months after.

01

3–6 months before expiry

Check your loan documents (or ask your broker) for the exact date your fixed term ends. This is when to start comparing — early enough to act, not so early that rates might shift again.

02

Compare your options

See what your current lender's revert rate will be, what a retention rate might look like, and what real rates are available elsewhere. A broker does this comparison for you in one conversation.

03

Apply before the fixed term ends

If refinancing, aim to have a new loan approved and ready to settle right as your fixed term ends — so you're never sitting on the revert rate, even briefly.

04

Settle — old rate out, new one in

The new lender pays out the old loan (or your existing lender applies the new rate). No gap, no surprise repayment.

Revert vs. refinance calculator

How much does refinancing
actually save you?

Compare what you'd pay if you revert against what a competitive refinance could look like.

Your loan at expiry

Loan balance

Remaining term

Revert rate

Refinance rate

Switching costs

Discharge fee + new application fee. A broker confirms the actual figure.

Your estimated monthly saving by refinancing

$357

versus paying the revert rate — $4,286 a year.

5-year net saving

After $850 switching costs

$20,579

Break-even

Months to recover switching costs

3 mo

A broker can tell you your exact revert date and the real rate you'd qualify for elsewhere. Compare refinance rates across 30+ lenders.

Ask a broker

Indicative only, based on principal-and-interest repayments with a constant rate. Actual rates, fees and break costs depend on your full circumstances.

Real client story

Locked in at a record-low rate, three months from the cliff edge.

One of our clients fixed their rate back in 2021, at a rate they knew wouldn't last forever. They hadn't thought much about what happened next — until we flagged that their fixed term was ending in a few months and they were about to roll onto their lender's standard variable rate.

We compared their lender's revert rate against what they could genuinely qualify for elsewhere, and timed a refinance to settle right as the fixed term expired — so they moved straight from their old fixed rate to a new, competitive one, without ever paying a day on the revert rate.

The lesson we give every client with a fixed rate: put a reminder in three to six months out. It's the single easiest way to avoid paying more than you need to.

The above example is based on a real client scenario. Every application is subject to individual circumstances and lender approval. This is general information within Australian Credit Licence scope and is not financial advice.

Keep readingIs refinancing worth it? The full guide + savings calculator

Fixed rate expiry FAQs

Questions, answered.

Unless you act, your loan automatically rolls onto your lender's standard variable rate — this is written into your loan contract. It happens without any extra paperwork or notice period from most lenders, so it's easy to miss.

In most cases, yes, since fixed rates taken out in 2020–2022 were near record lows and today's revert rates reflect a much higher cash rate. The standard variable rate is also usually a lender's least competitive rate — existing customers who don't ask rarely get the sharpest deal.

Yes — and it's the ideal approach. You can apply for a new loan in the months before your fixed term expires and time settlement to land right as it ends, so you move straight from your old rate to a new one without ever paying the revert rate.

If you refinance before your fixed term ends, you may be charged a break cost, which can range from nothing to several thousand dollars depending on how rates have moved and how much time is left. A broker checks this with your current lender before you commit to anything.

It depends on what you value. Re-fixing gives you certainty over your repayments, but most fixed loans limit extra repayments and don't allow an offset account. A broker can talk through both paths against your situation.

Three to six months before your fixed term ends is the sweet spot — early enough to compare properly and get a new loan approved, but close enough that rate conditions won't have shifted much by the time you settle.

Don't let it revert.
Talk to a broker first.

Tell us when your fixed rate ends and we'll help you line up a better one before it does. No phone number, no obligation.

Start the conversation

Your fixed rateis ending.