If your fixed-rate home loan is due to expire in the next few months, you’re not alone. A large wave of Australian borrowers who locked in fixed rates over the past few years are now approaching the end of their fixed term, at a time when the cash rate has moved considerably from where it was when many of those rates were set.
The question most of these borrowers are asking is simple: should you refinance before your fixed rate ends, renegotiate with your current lender, or just let the loan roll onto its revert rate and deal with it then?
Here’s what actually happens when a fixed term ends, and how to work out which option suits your situation.
What Happens When Your Fixed Rate Ends?
If you don’t take any action before your fixed term expires, your loan doesn’t stop. It automatically rolls onto your lender’s standard variable revert rate. This rate is often higher than both:
- The fixed rate you’ve been paying, and
- The variable rates that same lender (or competitors) are offering to new customers.
This gap between the revert rate and current market rates is sometimes called “loyalty tax”: existing borrowers on a lender’s back book paying more than new customers get offered on the front book. It’s one of the main reasons refinancing activity tends to spike around fixed-rate expiry.
The RBA lifted the cash rate again at its 29 September meeting, taking it to 4.60%, the fourth increase of 2026. Whatever happens at future meetings, the practical question for borrowers coming off a fixed rate is the same: what rate will you actually revert to, and is that competitive with what else is available?
Why This Is a Bigger Decision Than It Used to Be
The cash rate has moved several times since early 2026, with the RBA lifting it through February, March, May and again in September, after a pause in June and August. For borrowers who fixed their rate before or during that period, the gap between their fixed rate and today’s market conditions can be significant.
If you’re weighing this up alongside how fixed and variable rates compare heading into the rest of 2026, this matters for two reasons:
- Your repayments could jump noticeably the moment you roll onto a revert rate, even without you doing anything. You can see how a rate change affects your actual repayments using our calculator.
- Your borrowing capacity may have changed since you last had your loan assessed. Lenders apply serviceability buffers on top of the actual interest rate, so a higher-rate environment can reduce how much you’d qualify to borrow if you were to reapply today. That is worth knowing well before you need to make a decision under pressure.
Should You Refinance Now, or Wait?
There’s no single right answer, but a few questions can help clarify the decision:
When does your fixed term actually end?
Most lenders will contact you roughly 30–90 days before your fixed rate expires. If you’re inside that window, it’s worth comparing options now rather than waiting for the rollover to happen automatically. Refinancing takes time to arrange, and starting early gives you more room to compare properly instead of rushing a decision.
Is your current lender’s revert rate actually competitive?
Sometimes it is. Not every borrower needs to switch lenders. Occasionally, simply asking your current lender to move you onto a better rate (rather than accepting the default revert rate) is enough. This is worth checking before assuming a full refinance is necessary.
What would refinancing actually cost you?
Refinancing isn’t free. Costs can include discharge fees from your current lender, application or valuation fees with a new lender, and potentially Lenders Mortgage Insurance if your loan-to-value ratio has shifted. These costs need to be weighed against the savings a better rate would actually deliver, which is exactly the kind of comparison worth running properly rather than estimating.
Has anything changed in your situation?
If your income, expenses, employment or property value have changed since you last had the loan assessed, it’s worth understanding how that affects what you could refinance into, for better or worse, before you commit to a plan.
What a Mortgage Broker Can Do Before Your Fixed Rate Ends
Rather than waiting for your lender’s letter and reacting to whatever revert rate you’re offered, a broker can get ahead of the decision and help you compare your options across MTMB’s lender panel:
- Compare your likely revert rate against current offers across a panel of lenders
- Check whether refinancing costs are actually justified by the savings on offer
- Assess your current borrowing capacity, in case your circumstances have changed
- Help you time the refinance so a new loan is ready to settle close to your fixed-rate expiry date, avoiding a gap on the revert rate altogether
- Explain loan features such as offset accounts, redraw and split loans that might suit your situation better than what you’re currently on
None of this requires committing to switch. It simply means making the decision with proper comparison, rather than by default.
Ready to check whether you should switch?
If your fixed rate is ending in the next few months, it’s worth comparing your options before it happens automatically. Book a free mortgage review with Money Tree Mortgage Brokers and we’ll check whether your revert rate stacks up, with no obligation either way.
Book a Mortgage Review
Frequently Asked Questions
What happens if I do nothing when my fixed rate ends?
Your loan automatically moves onto your lender’s standard variable revert rate. This can be higher than rates currently offered to new customers, so it’s worth checking in advance rather than letting it happen by default.
How much notice will my lender give me before my fixed rate expires?
Most lenders notify borrowers somewhere between 30 and 90 days before the fixed term ends, though this varies by lender. Check your loan documents or ask your lender directly for your specific timeline.
Is it better to refinance now or wait to see if rates fall?
This depends on your circumstances, your current revert rate, and how confident you want to be about your repayments. Waiting on a prediction about future rate movements carries its own risk. A broker can help you weigh a known option now against an uncertain one later.
How much does refinancing actually cost?
Costs vary by lender and loan size, and can include discharge fees, application fees, valuation fees and potentially Lenders Mortgage Insurance. A broker can give you a realistic cost estimate based on your specific loan and lender.
Can I renegotiate with my current lender instead of switching?
Yes, this is sometimes possible and worth asking about before assuming you need to move lenders entirely. Whether it results in a genuinely competitive rate is worth comparing against the broader market rather than accepting the first offer.
Will refinancing affect my borrowing capacity?
Refinancing itself doesn’t reduce your borrowing capacity, but the assessment involved will reflect current serviceability rules and interest rates, which may differ from when your original loan was approved.
