If you locked in a fixed home loan rate a few years ago, there is a good chance it expires sometime in 2026. The weeks before that expiry are the most valuable window you have — it is when you have the most options and the most negotiating power. The worst thing you can do is let the date pass without a plan, because the default outcome is rarely the best one. Here is the playbook.
What happens when a fixed rate expires
When your fixed term ends, your loan does not stay fixed and it does not automatically move to the lender's best rate. It typically reverts to the lender's standard variable rate — which is often one of the higher rates that lender offers. Lenders rely on inertia: many borrowers simply let the loan roll over and quietly pay more than they need to, sometimes for years.
That revert rate is the number to beat. It is almost never the sharpest deal available to you, even from your own lender.
Why the months before matter most
The ideal time to act is roughly 60 to 90 days before your fixed rate ends. That gives you time to compare the market, get an application assessed, and have a new rate ready to take effect the moment your fixed term finishes — so you never sit on the expensive revert rate at all.
Leaving it to the last week usually means you land on the revert rate for at least a billing cycle or two while a switch is arranged. On a typical Melbourne mortgage, even a couple of months on the wrong rate is real money.
Your options at expiry
- Negotiate with your current lender: often they will offer a better rate to keep you, especially if you have a competing offer in hand
- Refinance to a new lender: sometimes the sharpest rates, plus cashback offers, sit with a different lender
- Fix again: if you value certainty and the fixed rates on offer suit your view, locking in again can make sense
- Split the loan: fix part and leave part variable, balancing certainty against flexibility
What to weigh up
The right answer is not just the headline rate. It also depends on the comparison rate (which includes fees), whether you want an offset account, your appetite for rate movement, and any switching costs. A slightly higher rate with a genuine offset can beat a lower rate without one, depending on how you use your money.
The cost of switching
Refinancing is not free, but the costs are usually modest relative to the savings: discharge fees from your old lender, a possible application or settlement fee, and a government title fee. Many lenders run cashback offers that cover these. The maths almost always favours acting if your revert rate is meaningfully above market.
The practical steps
- Find your exact fixed-rate expiry date — check your loan statement or ask your lender
- Around 90 days out, get your current rate, balance and property value together
- Compare your revert rate against current market rates
- Decide between negotiating, refinancing, re-fixing or splitting
- Have the new arrangement ready to take effect on the expiry date
Our fixed-rate expiry calculator is a quick way to see what your repayments look like at the revert rate versus a sharper one.
If you'd like a hand
We do this every week — checking expiry dates, comparing 40+ lenders, and making sure clients never drift onto a revert rate by accident. If your fixed rate is ending this year, the earlier we look, the more options you have.
Book a quick call and we will map your timing and your options.
