By Will Kiln | Published 16 October 2026 | Last Updated 16 October 2026
Interest rates, lender policies and market data referenced in this article are current as at October 2026. The RBA cash rate is 4.60%. Rates and policy change frequently — contact us for the latest figures.
There is one day in the life of a mortgage where doing nothing costs you the most money, and it's the day your fixed term ends.
When a fixed rate expires, the loan doesn't quietly move to your lender's best variable rate. It rolls to the revert rate — the carded standard variable rate with no discount applied. On most lender books that sits well above what the same lender is offering a new customer walking through the door that morning.
Borrowers who let this happen on autopilot commonly pay somewhere between 0.5% and 1.5% more than they need to. On a $900,000 loan, the upper end of that range is roughly $9,000 a year.
Here's the timeline that prevents it.
90 days out: find out exactly where you land
Three pieces of information, all of which your lender will give you if you ask:
1. The exact expiry date. Not the month — the date. Repayments change from that day.
2. Your revert rate. Ask specifically: "what rate does my loan revert to at the end of the fixed term, before any discount?"
3. Your current loan-to-value ratio. Estimate your property's value conservatively and divide the balance by it. Under 80% opens up the sharpest pricing in the market. Under 60% opens up a further tier at some lenders.
Then do the arithmetic. Take your current fixed rate, the revert rate, and your balance, and work out the monthly difference. That number is what's actually at stake, and it's usually larger than people expect.
60 days out: test the market before you talk to your bank
This order matters, and most people get it backwards.
If you ring your lender first and ask for a better rate, you're negotiating with nothing. If you arrive with a written indicative offer from a competing lender, the conversation is entirely different — the retention team has discretionary pricing available and uses it when the alternative is losing the loan.
At 60 days, a broker can tell you within a day or two what you'd realistically be offered elsewhere given your LVR, income type and repayment history. That's your benchmark.
This is also the point to sanity-check your capacity. Serviceability has tightened through 2026: lenders assess repayments at roughly three percentage points above the actual rate, so most borrowers are being tested at around 9.75%. If your income or expenses have moved since you originally borrowed — a new car loan, a second child in daycare, a change to self-employment — you want to know that now, not at 30 days. See why refinance applications get declined.
45 days out: decide the structure, not just the rate
Rolling off a fixed rate is the natural moment to reset how the loan is built, because you're not paying break costs to do it.
Worth deciding now:
- Fixed again, variable, or split? Fixed rates already price in what markets expect the RBA to do, so re-fixing isn't a way to get ahead of the next move — it's a way to buy certainty. With markets currently leaning toward further tightening, a split suits many borrowers: certainty on the portion that matters, flexibility and extra repayments on the rest.
- Offset account. If you're re-fixing everything, you lose most of the benefit of an offset, because fixed portions usually don't offset. Keeping a variable split preserves it.
- Loan term. If cash flow is the pressure, extending the term reduces the repayment. It costs more interest over time. Make it a decision, not an accident.
- Repayment type. Investors rolling off interest-only need to check whether the loan converts to principal and interest at expiry. That's a much larger repayment jump than a rate change, and it catches people out badly.
30 days out: pull the trigger
By now you should be committed to one of three paths:
Path A — Reprice and stay. Your lender has matched or come close enough to the market. Get the new rate confirmed in writing and diarise a review in six months. Cost: nothing. Time: about a week.
Path B — Refinance. A competing lender is meaningfully sharper and your application is straightforward. A refinance typically takes four to eight weeks, so 30 days out means you may spend a few weeks on the revert rate before settlement. Usually still worth it — but start earlier next time.
Path C — Product switch within the same lender. You want a different structure rather than a different bank. Faster than a refinance, no discharge, no new valuation in most cases. Often overlooked.
7 days out: confirm the mechanics
- Check the new repayment amount and the first date it's debited.
- Check the debit account has enough in it — a fixed-to-variable switch often changes the repayment date as well as the amount.
- If you've been making extra repayments into a fixed loan up to an annual cap, confirm where that money now sits.
- If you've refinanced, confirm the discharge is progressing with the outgoing lender. Discharge delays are the single most common cause of a late refinance settlement.
If you've already rolled onto the revert rate
It isn't a disaster, and you haven't missed the window — you're just paying more each month until you fix it. The same sequence applies, compressed: get your current rate in writing, get a market benchmark, then go back to your lender with it.
One thing to check: some lenders quietly reprice loans that have rolled to revert if you simply ask. Others don't. The only way to find out is to ask, and the answer usually arrives within a week.
Frequently asked questions
What happens if I do nothing when my fixed rate expires?
The loan automatically moves to your lender's revert rate, which is the undiscounted standard variable rate. It's typically well above the rate the same lender offers new customers, and the change applies from the day the fixed term ends.
Can I refinance before my fixed rate ends?
Yes, but breaking a fixed loan early usually triggers a break cost. Break costs depend on how market rates have moved since you fixed — they're larger when rates have fallen and smaller when rates have risen. Ask your lender for the exact figure; it's calculated on the day.
Should I fix again when my fixed rate expires?
It depends on whether you value certainty more than flexibility. Fixed rates already reflect market expectations of future RBA moves, so re-fixing isn't a way to beat the cycle. A split between fixed and variable suits most borrowers who want some repayment certainty while keeping an offset and unlimited extra repayments on part of the loan.
How early should I start?
Ninety days out. That gives you time to benchmark the market, negotiate, and if necessary complete a refinance before the fixed term ends.
Fixed rate expiring in the next few months? Send us the expiry date and your current rate — we'll tell you what you'd be offered elsewhere and whether your own lender is likely to match it.
This article provides general information only and does not constitute personal financial advice. Rates, costs and savings are indicative and will vary based on your individual circumstances and chosen lender.
Cumulus Capital Pty Ltd (ABN 16 695 377 229), Credit Representative Number 577081, is authorised under Australian Credit Licence Number 389328.