Your fixed rate is expiring.When your fixed rate term ends, your loan usually switches to a variable rate and your repayments can change. Here's how fixed rate expiry works, why it matters, and what you can do about it before the deadline. |
The mechanics
Four stages of a fixed rate loan.
Knowing the timeline helps you plan ahead instead of drifting onto a higher variable rate.
| 01 You lock in a rateYou agree a fixed interest rate for a set period commonly 1, 2, 3 or 5 years. Your repayments stay the same during that time. | 02 Fixed term ticks overYour lender honours the fixed rate for the agreed term. Most fixed loans limit extra repayments and redraw during this time. | 03 Expiry date arrivesThe fixed period ends. Your lender usually moves the loan to their standard variable rate automatically unless you arrange a new fix. | 04 Repayments may changeIf the variable rate is higher than your fixed rate, your monthly repayment rises. If it's lower, it may fall but variable rates can move again. |
The key thing to rememberA fixed rate is temporary. Once it expires, your loan reverts to the lender's variable rate unless you take action. That variable rate is often higher than what you were paying, so it pays to review your options before the expiry date. |
Worked example
What a fixed rate expiry can cost.
Rates vary by lender and timing, but this example shows why the change can be significant.
| During fixed rate Years 1–3
| After fixed rate expiry Year 4 onwards
That's roughly $220 more per month or over $2,600 extra per year. |
| Important: These figures are illustrative only. Your actual repayment change depends on your fixed rate, revert rate, loan balance, remaining term and lender fees. The point is: the expiry date is a deadline worth diarising, and reviewing early gives you more negotiating power. |
Why it happens
Three reasons your repayment can rise at expiry.
| 01 The fixed rate endsYour discounted or locked-in rate no longer applies. The loan reverts to the lender's current variable rate. | 02 Market rates may have movedIf the Reserve Bank or funding markets have shifted since you fixed, your new rate could be noticeably higher. | 03 Your balance is lowerYou may have paid down some principal during the fixed term, which can partly offset a higher rate but not always fully. |
Your options
What can you do before your fixed rate expires?
The best time to act is 1–2 months before expiry. Here are the most common paths.
| Option 01 Refix with your current lenderAsk your lender for a new fixed rate offer. Compare it against their revert rate and what other lenders are advertising. | Option 02 Refinance to another lenderA new lender may offer a sharper fixed or variable rate, cashback, or better loan features. Watch for discharge fees and break costs if you leave during the fixed term. |
| Option 03 Switch to variableIf you value flexibility over certainty, a competitive variable rate with an offset account may suit you better than another fixed term. | Option 04 Split your loanFix part of your loan for repayment certainty and leave the rest variable for flexibility and extra repayments. |
| Timing matters Review 1–2 months before expiry.Starting early gives your broker time to request rate letters, compare lenders, and lodge any paperwork before your loan reverts. Leaving it until after expiry often means paying a higher revert rate while you sort out a better deal. |
| How we help We make fixed rate expiry simple.Our brokers will check your fixed rate expiry date, request your lender's revert and refix offers, and compare them against the wider market in plain English, with no pressure.
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FAQ
Common questions about fixed rate expiry.
| What is fixed rate expiry? | It's the date your fixed interest rate term ends. After this date, your loan usually reverts to your lender's standard variable rate unless you arrange a new fixed rate or refinance. |
| When should I start looking at my options? | Ideally 1–2 months before expiry. This gives you time to compare your lender's refix offer with the broader market and avoid paying a higher revert rate. |
| Will my lender tell me what my new rate will be? | Most lenders send a rate letter or notification shortly before expiry. We can request this for you and compare it against other lenders at the same time. |
| Can I refinance before my fixed rate expires? | You can, but breaking a fixed rate early usually incurs break costs. We calculate whether the savings from refinancing outweigh those costs before you move. |
| Should I fix again or go variable? | It depends on your goals. Fixing gives repayment certainty. Variable offers flexibility and can fall if rates drop. A split loan can give you both. We model each scenario for you. |
| What happens if I do nothing? | Your loan usually reverts to the lender's standard variable rate automatically. That rate is often higher than competitive new-customer rates, so doing nothing can cost you. |
| Are there fees to refix or refinance? | Refixing with the same lender is usually free. Refinancing may involve discharge fees, valuation fees, or break costs if you exit a fixed term early. We factor these into the comparison. |
| Can I make extra repayments during a fixed rate? | Most fixed loans allow limited extra repayments often up to a set amount per year. If flexibility matters to you, we can compare fixed, variable, and split-loan structures. |
Get in touchLet's review your fixed rate expiry.Book a free, no-obligation chat. We'll check your expiry date, compare your lender's offers, and walk you through the options that suit your situation. Melbourne office Queensland office Phone | |