What happens to my interest rate when my fixed loan expires?

When your fixed term home loan expires, your interest rate will typically revert to a variable rate, which can fluctuate in response to changes in the market. This is why it is called a “revert rate.” The revert rate is usually higher than the new lending rates available, this is due to the rate not containing any discounts.

When your fixed term expires, you generally have a few options:

  • Refinance to a new fixed rate loan: If you prefer the stability of a fixed interest rate, you may want to consider refinancing your home loan to a new fixed rate loan depending whether the rates are attractive enough.
  • Switch to a variable rate loan: Variable rates are often lower than fixed rates, and this could potentially result in lower monthly payments if interest rates fall. If you are comfortable with the uncertainty of a fluctuating interest rate, you may want to switch to a variable rate loan.
  • Negotiate with your lender: If you are happy with your lender and do not want to switch to a different one, you may be able to negotiate a lower variable or fixed rate with them.

Regardless of which option you choose, it’s important to carefully consider your financial situation and to compare offers from different lenders before making a decision – this is where we come in as we can utilise our large panel of lenders to negotiate great rates and tailor a product that works for you.

Rate Rises Set to Slow

Here’s a 5-minute read by Macquarie Bank regarding inflation, rate relief and property price expectation.

Three key takeaways for 2023:

  • While inflation will take time to reduce to historic averages in Australia, the headline rate is projected to begin falling in 2023.
  • Falling inflation would in turn take pressure off the RBA to keep hiking interest rates – meaning the number and pace of rate rises is set to slow.
  • While property prices are expected to fall further this year, the market is expected to stabilise towards the second half of 2023.

48 Hour Turnaround Times

If you require rapid approval, we have major and non-major lenders offering pre-approvals within days; and some cases, within hours!

More Options For Self-Employed

Many think that there are no loan options for those that haven’t been in business for at least 2 years. But we have good news! We have a lender offering loans for self-employed and small/medium business clients that only require an ABN to be in existence for a minimum period of 3 months, providing the borrower has been working within the same industry for 2 years.


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