{"id":14990,"date":"2025-05-12T14:40:14","date_gmt":"2025-05-12T14:40:14","guid":{"rendered":"https:\/\/finderica.com\/?p=14990"},"modified":"2025-05-12T14:40:14","modified_gmt":"2025-05-12T14:40:14","slug":"the-next-steps-when-your-fixed-rate-ends","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14990","title":{"rendered":"The Next Steps When Your Fixed Rate Ends\u00a0"},"content":{"rendered":"
\n

The end of a fixed rate term can be worrying, especially in a high-rate environment. It\u2019s important to take stock of your options and make the best choice for your finances.\u00a0<\/p>\n<\/div>\n

\n

The expiry of a fixed rate term on a home loan isn’t always a bad thing \u2013 it can be a valuable opportunity to review your home loan strategy. Whether you refinance, negotiate, or re-fix, the key is making sure your decisions work in your financial interests. Here are the typical choices in front of you:<\/p>\n

    \n
  1. \n

    Allow your home loan rate to revert to the aptly named revert rate<\/p>\n<\/li>\n

  2. \n

    Negotiate for a particular variable rate<\/p>\n<\/li>\n

  3. \n

    Refinance your home loan<\/p>\n<\/li>\n

  4. \n

    Choose a new fixed rate option<\/p>\n<\/li>\n<\/ol>\n

    Option 1: Do nothing and cop the revert rate<\/h2>\n

    If you do nothing, your home loan rate will probably automatically revert to your lender’s default variable rate.<\/p>\n

    This ‘revert rate’ is usually higher than the lender’s advertised variable rates, and often much higher than your original fixed rate.<\/p>\n

    It’s rarely the most cost-effective choice \u2013 so it’s worth exploring your options.<\/p>\n

    Option 2: Negotiate with your lender<\/h2>\n

    Most lenders are open to negotiation \u2013 especially if you’re a borrower with a strong repayment history.<\/p>\n

    A simple phone call could land you a better deal.<\/p>\n

    After all, a customer retained is better than one lost. Your lender earns nothing if you refinance elsewhere. Even a reduced rate is likely still a win for it and a saving for you.<\/p>\n

    However, you might need to bluff your way to a discount.<\/p>\n

    Don’t be afraid to say you’re planning to refinance your home loan \u2013 perhaps even research a few options you could refinance too so your lender believes you’re serious. The potential loss of your business could tip the scales in your favor.<\/p>\n

    Moreover, lenders often offer their lowest rates to new customers. Take the time to check your lender’s website (and maybe make a cheeky enquiry) to learn what it’s offering new customers and use your findings in your negotiations.<\/p>\n

    Option 3: Refinance your home loan<\/h2>\n

    If your current lender won’t budge, or if you’ve found a better deal elsewhere, refinancing could be worth it.<\/p>\n

    Benefits of refinancing include:<\/p>\n

    Refinancing means replacing your current home loan with a new one \u2013 potentially with lower rates, different terms, or better features.<\/p>\n

    There are fees involved with refinancing, but the long-term savings often outweigh them. Still, it pays to do the math.<\/p>\n

    If you’re considering refinancing your home loan, here are some of the most competitive variable mortgage rates on the market now:<\/p>\n

    \n\n\n\n\n\n
    Lender<\/th>\nHome Loan<\/th>\nInterest Rate <\/path><\/path><\/svg><\/th>\nComparison Rate* <\/path><\/path><\/svg><\/th>\nMonthly Repayment <\/path><\/path><\/svg><\/th>\nRepayment type <\/path><\/path><\/svg><\/th>\nRate Type <\/path><\/path><\/svg><\/th>\nOffset <\/path><\/path><\/svg><\/th>\nRedraw <\/path><\/path><\/svg><\/th>\nOngoing Fees <\/path><\/path><\/svg><\/th>\nUpfront Fees <\/path><\/path><\/svg><\/th>\nMax LVR <\/path><\/path><\/svg><\/th>\nLump Sum Repayment <\/path><\/path><\/svg><\/th>\nAdditional Repayments <\/path><\/path><\/svg><\/th>\nSplit Loan Option <\/path><\/path><\/svg><\/th>\nTags<\/th>\nRow Tags<\/th>\nFeatures<\/th>\nLink<\/th>\nCompare<\/th>\nPromoted Product<\/th>\nDisclosure<\/th>\n<\/tr>\n<\/thead>\n\n
    \n\n<\/td>\n\n<\/td>\n\n

    5.79%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.83%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,931<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $530<\/p>\n<\/td>\n

    		\n

    90%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • Available for purchase or refinance, min10% deposit needed to qualify.<\/li>\n
    • No application, ongoing monthly or annual fees.<\/li>\n
    • Dedicated loan specialist throughout the loan application.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \nPromoted
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n
    \n<\/td>\n\n<\/td>\n\n

    5.84%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.86%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,947<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $250<\/p>\n<\/td>\n

    		\n

    60%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • Easy application. Fast approval. No annual fee.<\/li>\n
    • Unlimited additional repayments free of charge.<\/li>\n
    • Redraw freely – Access your additional payments.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \nPromoted
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n
    \n<\/td>\n\n<\/td>\n\n

    5.74%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.65%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,915<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $0<\/p>\n<\/td>\n

    		\n

    80%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • A low-rate variable home loan from a 100% online lender. <\/li>\n
    • Backed by the Commonwealth Bank.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n


    \n<\/smg-comparison-table><\/p>\n

    \n
    \n
    \n<\/path><\/svg><\/p>\n

    Important Information and Comparison Rate Warning<\/p>\n<\/div>\n

    \n

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the \u2018Compare Home Loans\u2019 table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider\u2019s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products\u2019 advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user\/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . <\/p>\n<\/div>\n<\/div>\n<\/div>\n

    <\/p>\n

    <\/path><\/path><\/path><\/svg>Important Information and Comparison Rate Warning<\/span><\/div>\n

    <\/a><\/p>\n

    Preparing to refinance on a fixed rate expiry<\/h3>\n

    If the end of your fixed rate period is approaching and you plan to refinance on its expiry, now could be a good time to start getting your ducks in a row.<\/p>\n

    You might start by comparing the mortgage market, reassessing your loan-to-value ratio (LVR), and considering whether to consolidate debts or access equity. You could even get your property revalued ahead of a new application.<\/p>\n

    If you’re looking to refinance before your fixed term ends, be aware this might trigger break costs. Depending on your remaining loan term, loan size, and how interest rates have changed since you locked in, these fees can be substantial.<\/p>\n

    Should I break my fixed rate to refinance early?<\/h3>\n

    With interest rates fluctuating, some borrowers may be considering breaking their fixed term early to get a better rate or access features their current loan doesn’t offer.<\/p>\n

    While this can be a smart move, it’s important to weigh the potential savings against break costs and any application or discharge fees.<\/p>\n

    Option 4: Fix your rate again<\/h2>\n

    The final option open to those rolling off a fixed rate period is to secure a new fixed rate.<\/p>\n

    If financial certainty is still important to you, re-fixing your rate could be a smart move \u2013 especially if you expect rates to rise again.<\/p>\n

    If you want to enter into another fixed rate period, now’s the time to shop around. In fact, you can follow the above steps to negotiate a lower fixed rate with your lender or refinance to another lender’s fixed rate \u2013 the choice is yours.<\/p>\n

    You could even choose to go down the split rate path, fixing the rate on part of your mortgage while you realise a variable rate on the remaining portion. This approach can offer the best of both worlds \u2013 some repayment stability, and some flexibility.<\/p>\n

    Considering a fixed rate home loan? Check out these low-rate options:<\/p>\n

    \n\n\n\n\n\n
    Lender<\/th>\nHome Loan<\/th>\nInterest Rate <\/path><\/path><\/svg><\/th>\nComparison Rate* <\/path><\/path><\/svg><\/th>\nMonthly Repayment <\/path><\/path><\/svg><\/th>\nRepayment type <\/path><\/path><\/svg><\/th>\nRate Type <\/path><\/path><\/svg><\/th>\nOffset <\/path><\/path><\/svg><\/th>\nRedraw <\/path><\/path><\/svg><\/th>\nOngoing Fees <\/path><\/path><\/svg><\/th>\nUpfront Fees <\/path><\/path><\/svg><\/th>\nMax LVR <\/path><\/path><\/svg><\/th>\nLump Sum Repayment <\/path><\/path><\/svg><\/th>\nAdditional Repayments <\/path><\/path><\/svg><\/th>\nSplit Loan Option <\/path><\/path><\/svg><\/th>\nTags<\/th>\nRow Tags<\/th>\nFeatures<\/th>\nLink<\/th>\nCompare<\/th>\nPromoted Product<\/th>\nDisclosure<\/th>\n<\/tr>\n<\/thead>\n\n
    \n\n<\/td>\n\n<\/td>\n\n

    5.79%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.83%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,931<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $530<\/p>\n<\/td>\n

    		\n

    90%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • Available for purchase or refinance, min10% deposit needed to qualify.<\/li>\n
    • No application, ongoing monthly or annual fees.<\/li>\n
    • Dedicated loan specialist throughout the loan application.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \nPromoted
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n
    \n<\/td>\n\n<\/td>\n\n

    5.84%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.86%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,947<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $250<\/p>\n<\/td>\n

    		\n

    60%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • Easy application. Fast approval. No annual fee.<\/li>\n
    • Unlimited additional repayments free of charge.<\/li>\n
    • Redraw freely – Access your additional payments.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \nPromoted
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n
    \n<\/td>\n\n<\/td>\n\n

    5.74%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    5.65%<\/span>\u00a0p.a.<\/span><\/span><\/p>\n<\/td>\n

    		\n

    $<\/span>2,915<\/p>\n<\/td>\n

    		\n

    Principal & Interest<\/p>\n<\/td>\n

    		\n

    Variable<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n\n

    $0<\/p>\n<\/td>\n

    		\n

    $0<\/p>\n<\/td>\n

    		\n

    80%<\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n\n<\/td>\n\n
      \n
    • A low-rate variable home loan from a 100% online lender. <\/li>\n
    • Backed by the Commonwealth Bank.<\/li>\n<\/ul>\n<\/td>\n
    		\n<\/td>\n\n
    \n<\/span>\n<\/td>\n    		\nDisclosure<\/span>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n


    \n<\/smg-comparison-table><\/p>\n

    \n
    \n
    \n<\/path><\/svg><\/p>\n

    Important Information and Comparison Rate Warning<\/p>\n<\/div>\n

    \n

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the \u2018Compare Home Loans\u2019 table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider\u2019s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products\u2019 advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user\/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . <\/p>\n<\/div>\n<\/div>\n<\/div>\n

    <\/p>\n

    <\/path><\/path><\/path><\/svg>Important Information and Comparison Rate Warning<\/span><\/div>\n

    <\/a><\/p>\n

    Is it possible to extend a fixed rate period?<\/h2>\n

    Generally, no. Once your fixed term expires, the agreement ends and your loan reverts to a variable rate unless you actively choose to fix it again.<\/p>\n

    You may be offered a new fixed rate term, but it’ll reflect current market conditions, which may be significantly different from when you first locked in.<\/p>\n

    What happens when interest rates have increased during a fixed period?<\/h3>\n

    If rates have gone up during your fixed period, you might be facing the ‘fixed rate cliff’ \u2013 a sudden and significant jump in repayments.<\/p>\n

    In this case, preparation is key.<\/p>\n

    Start comparing rates before your fixed term ends. Even a small reduction on your revert rate can save you thousands over the life of the loan.<\/p>\n

    What if I would no longer qualify for my mortgage?<\/h3>\n

    If you would no longer qualify for your current mortgage (perhaps due to job loss or a property market downturn), you might find yourself unable to refinance until your situation improves. Though, you might find a lender willing to consider your home loan application on a like-for-like refinancing basis.<\/p>\n

    Otherwise, you might need to either realise the revert rate, negotiate with your current lender, or fix your home loan rate once more.<\/p>\n

    Article originally written in 2018 and updated by Hanan Dervisevic in 2022. Last updated by Brooke Cooper in 2025.<\/em><\/sub><\/p>\n

    Image by wirestock on Freepik<\/em><\/sub><\/p>\n

    \n<\/div>\n

    Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    The end of a fixed rate term can be worrying, especially in a high-rate environment. It\u2019s important to take stock of your options and make the best choice for your finances.\u00a0 The expiry of a fixed rate term on a home loan isn’t always a bad thing \u2013 it can be a valuable opportunity to<\/p>\n","protected":false},"author":1,"featured_media":14991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[216],"tags":[1616,1090,138,258],"class_list":{"0":"post-14990","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mortgage","8":"tag-ends","9":"tag-fixed","10":"tag-rate","11":"tag-steps"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14990","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14990"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/14991"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}