What Happens When Your Fixed-Rate Home Loan Expires?

If you are one of the many Australians with a fixed-rate home loan, it’s important to know what happens when that fixed period comes to an end, and how it could impact your financial future.

Homeowners face rising interest rates as fixed-rate loans expire – plan ahead with expert mortgage advice.

Your Loan Will Revert to a Standard Variable Rate

When your fixed-rate period ends, unless you’ve made new arrangements with your lender, your mortgage will typically revert to the standard variable rate. This rate is usually higher than what you were previously paying, which can come as a rude shock if you’re not prepared.

With the recent changes in the lending market and increasing interest rates, homeowners coming off ultra-low fixed deals may find their monthly repayments jump significantly. A difference of even 1–2% can translate to hundreds of dollars more per month.

Why You Should Plan Ahead

Many borrowers make the mistake of letting their home loan revert automatically, assuming that the bank will offer the best deal. But the truth is, lenders rarely offer their most competitive rates to existing customers. This is why it’s so important to take action before your fixed period ends.

By planning ahead, you give yourself time to:

• Compare new fixed and variable rate options

• Refinance to a better deal

• Adjust your budget for any potential repayment increases

• Take advantage of any cashback offers

Explore Your Refinance Options

The lending landscape has likely changed since you first took out your fixed-rate loan. Interest rates may have increased, but new home loan products or lender specials might now be available that better suit your financial goals.

Speaking with a mortgage broker gives you access to a wider panel of lenders and tailored solutions. A broker can compare the market for you, provide options that match your circumstances, and help you refinance with confidence, often at no cost to you.

Don’t Settle—Let’s Find a Better Deal

Letting your home loan roll onto the standard variable rate without reviewing your options could cost you thousands over the life of your loan. You don’t have to settle for what your current lender offers.

Make an obligation-free call to discuss your circumstances. Whether you’re looking to lower your repayments, access equity, or switch to a better product, we’ll help you navigate the process and find a low-cost home loan that works for you.

Key Takeaways

• When a fixed-rate home loan ends, it typically reverts to a higher variable rate

• Planning ahead helps avoid repayment shock and unlocks better options

• A mortgage broker can help you compare rates, refinance, and save money

• Don’t settle for the standard variable rate—explore the market before your fixed term ends

Ready to Refinance or Review Your Loan?

Whether your fixed term ends in a few months or you’re already on a variable rate, now is the time to take action. Contact us today to explore your refinance options and secure a more competitive home loan.

Disclaimer:

The information provided on this website is for general information and educational purposes only. It does not take into account your personal objectives, financial situation, or needs, and should not be relied upon as financial, legal, or tax advice. While we strive to ensure the content is accurate and up to date, we make no guarantees of its completeness, reliability, or suitability. Any reliance you place on the information is strictly at your own risk. We recommend that you seek independent professional advice before making any financial decisions, including from a licensed mortgage broker, financial adviser, or tax professional. References to government schemes, grants, or lender products are subject to change and eligibility criteria. Please confirm details with the relevant authority or provider. We are not responsible for any loss, liability, or damage incurred as a result of the use of this website or its content.