A fixed rate does not end quietly. It reverts.
Your loan will usually move to the lender’s variable revert rate when the fixed period finishes. Confirm that rate and repayment, then compare the available options before expiry.
The revert
What actually happens on the day
Unless you agree to another arrangement, the loan usually moves to the lender’s variable revert rate. Ask for the rate, repayment and effective date in writing.Moneysmart’s fixed-rate guidanceexplains the transition and the features to compare.
Your change depends on your current rate and the actual offer at expiry. The RBA's Table F6 series tracks both the average rate on existing fixed owner occupier loans with three years or less to run, 5.53% in May 2026, and the average rate on new fixed loans of the same term, 6.07%.1 The difference between those historical averages is 54 basis points. This compares groups of loans; it does not predict your repayment change or provide a current refinancing offer.
1 Reserve Bank of Australia, Statistical Table F6, data to 31 May 2026, retrieved 26 July 2026.
The timeline
The eight weeks before
Use eight weeks as a planning prompt. Processing and settlement times vary, and approval is not guaranteed. Ask what happens if a switch settles after expiry, and confirm any costs of settling before the fixed period ends.
- Find your expiry date and your revert rate. Both are in your loan documents, and the revert rate is the number that matters. Lenders will tell you on request.
- Find what is actually available. Advertised rates move, and the sharpest variable rates are published and comparable.2 This gives you the number to negotiate against. Comparing rates properly covers what to look at besides the headline.
- Request an offer from your lender. Quote a genuine comparable offer and ask which rate and fees apply to your loan. Use the review checklistand get the proposed arrangement in writing.
- Decide fixed, variable or split. On the merits, not on inertia. Fixing again buys certainty and gives up flexibility, and many fixed products restrict extra repayments or exclude offset accounts.
2 Canstar, Home Loan Comparison, lowest variable rates table dated 2 July 2026, retrieved 26 July 2026.
The decision
Fix again, or take the variable
Compare fixed and variable optionsagainst your budget, planned extra repayments and possible sale or refinance. Rate certainty can be useful, but the restrictions and fees need to fit your plans.
What you give up is worth naming: most fixed loans cap extra repayments, many exclude offset accounts, and leaving early can trigger a break cost. What you get is a repayment you can plan around, which for a household with a tight budget can be worth more than the arithmetic suggests.
The RBA publishes the cash rate target and its history in Table F1.1,3 and it is the input everyone reads differently. Nobody knows where it goes next, including the people whose fixed rate pricing implies a view. Decide on what you need rather than on a forecast.
Splitting
A split home loan can combine fixed and variable portions. Compare the allocation, fees and offset eligibility for each portion. A split needs to fit your expected savings and budget; it is not automatically the right answer when you are unsure.
3 Reserve Bank of Australia, Statistical Table F1.1, data to 30 June 2026, retrieved 26 July 2026.
Afterwards
Then it starts drifting again
The offer you accept and competing rates can change over time. Record the agreed terms and review them when your fixed period, household circumstances or available offers change. The refinance savings calculatorhelps separate lower repayments from savings after switching costs.
After changing the loan, check payment instructions andconfirm any offset is still linked. If an interest-only period is ending too, prepare for that separaterepayment change.
Common questions.
What happens when a fixed rate expires?
The loan usually moves to the variable revert rate specified by the lender unless you agree to another arrangement. Confirm the applicable rate, repayment and effective date; do not assume it matches an advertised offer.
When should I start dealing with it?
Starting around eight weeks before expiry is a practical planning prompt, not a guaranteed processing time. Ask lenders about their timelines and confirm what happens if a switch settles after expiry.
Should I fix again or go variable?
Compare rate certainty with the features and restrictions of the actual products. Test higher variable repayments against your budget, and check extra payment limits, offset eligibility and early-exit costs on fixed offers. A split is another option to assess.
Can I ask my current lender for a better rate instead of switching?
Yes. Request an offer for your existing loan and compare it with genuine alternatives. Ask about fees, eligibility and any assessment required for a product change, then get the terms in writing.
What is a break cost and does it apply?
A break cost may apply when leaving a fixed loan early or making certain extra repayments. Ask for a quote for your intended date. Once the fixed period ends, an early-exit cost for that period should not apply, but discharge and other switching fees may remain.
Sources & content review
Market figures are point in time published figures, checked each time this page is reviewed.
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