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Navigating The End of Your Fixed Rate Home Loan

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My Fixed Rate is coming to an end, what now?

Before your fixed-rate home loan period ends, expect a reminder from your bank, typically through a letter, SMS, or digital banking notification.

This is your cue to review available options:

  1. Roll onto a variable interest rate (automatic if no action is taken).
  2. Re-fix your home loan interest rate.
  3. Split your home loan into fixed and variable portions.

1: Rolling onto a Variable Rate

If you don't act, your home loan will shift to a variable rate at the end of the fixed period. You'll receive a notice detailing this change. The variable rate depends on factors like property usage (investment or residence). With this option, you might access an any extra repayments made during the fixed period as redraw funds.

2: Re-fixing Your Home Loan

Choose another fixed rate to maintain consistent repayments. Be mindful of potential economic costs and additional fees if you end this new fixed period early. Consider any market commentary as to whether interest rates are likely to keep going up or hold, and when they’re expected to go back down

3: Splitting Your Home Loan

Mix stability and flexibility by dividing your loan into fixed and variable portions. This allows you to enjoy the predictability of fixed rates while benefiting from variable rate features like offset accounts. Some also see this as a way of hedging your bets against interest rate movements

Other things to consider

  • Checking Fixed Rate Expiry: Your fixed rate expiration date is available in your home loan contract or digital banking platforms. A month before expiry, expect a notification to plan ahead.
  • Post-Fixed Rate Decisions: As the fixed term concludes, decide whether to re-fix, switch to a variable rate, or refinance with a new lender. A Craggle can assist in these decisions. Inaction leads to a default switch to the lender's standard variable rate, often higher than other available rates.
  • Considering Fixed Rate Extension: You cannot extend a fixed rate term but can re-fix for a new term. The interest rate might differ, reflecting the current economic outlook.
  • Changing Loans During Fixed Rate Term: Modifications during the fixed term are restrictive and potentially costly. Discharge fees or break costs can be substantial. Consult your mortgage broker for tailored advice.

Need some help?

Check out Craggle's Guide to Winning at Home Loan Negotiations for information on how negotiate a better rate to ease your transition.

Alternatively, Sign-Up to our next Crowd Haggle event and let us handle the negotiations, it only takes 3 Minutes.

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Disclaimer: This is not financial advice and is for educational purposes only.

Written By


The Craggle Team

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