If your fixed rate ending date is coming up, you’re not alone. Plenty of Sutherland Shire homeowners locked in a fixed rate a few years ago and are now coming off it after several rate rises in 2026. The change in repayments can be a shock, but you have more options than simply accepting whatever your lender offers. This guide explains what happens when a fixed term expires, what to do in the months before, and how to work out whether switching is worth it.
What Happens When Your Fixed Rate Ends
When the fixed period finishes, your loan usually rolls onto the lender’s variable rate, often called the revert rate, unless you choose another option. Moneysmart notes that rates typically go up at this point, which makes it a good time to compare. The revert rate is not always the lender’s sharpest rate, because many lenders keep their best offers for new customers.
Your repayments are recalculated on the new rate and the remaining loan term. Importantly, break costs generally apply only if you leave a fixed loan before the term ends. Once the fixed period is over, you can usually refinance or switch without them, although other switching costs still apply.
Your Fixed Rate Ending Timeline
Leaving it until the last week limits your choices. As a general guide, work backwards from your expiry date.
90 Days Before
Your lender may write to you before your fixed rate ending date, but don’t wait for the letter to start planning.
Find your exact expiry date and current loan balance. Then check your budget against a higher repayment, and use our borrowing power calculator for a rough idea of where you stand. This is also the time to talk to a broker about whether refinancing is realistic.
60 Days Before
Ask your lender what rate you’ll move to, then ask whether they’ll offer something better. Meanwhile, compare that offer with the other lenders we can present. If refinancing looks worthwhile, gather payslips, statements and ID, because a new application and valuation can take several weeks, especially with some of the smaller lenders.
30 Days Before
Make a decision and lock it in. If you’re refinancing, aim for settlement on or just after the expiry date so you avoid break costs. If you’re staying, confirm the new rate in writing and check that your repayments have changed as expected.
Your Options When a Fixed Rate Ends
When your fixed rate ending date arrives, you have five broad choices. The right one depends on your plans for the property, your budget and how much certainty you want.
1. Accept the Revert Rate
This takes no effort, but it’s rarely the best deal. That said, it gives you flexibility for a while if you’re planning to sell or refinance soon.
2. Ask Your Lender for a Better Rate
Many lenders will reduce your rate to keep your business, especially if you have good equity and a clean repayment history. Moneysmart suggests telling your lender you’re planning to switch. A broker can show you what other lenders offer, which gives you something concrete to negotiate with.
3. Fix Again
Refixing gives you certainty for another term. However, fixed loans usually limit extra repayments and may not offer a full offset account. Our article on fixed vs variable in 2026 and Moneysmart both explain the trade-offs.
4. Split the Loan
A split loan fixes part of the balance and leaves the rest variable, so you get some certainty and some flexibility. Try different combinations with our split loan calculator.
5. Refinance to Another Lender
Refinancing can get you a sharper rate or better features, such as an offset account. Still, it only makes sense if the savings outweigh the costs, and if a new lender will approve you.
Can You Still Refinance After the 2026 Rate Rises?
A new lender assesses you as if you were borrowing from scratch. Under APRA settings confirmed in May 2026, banks must test whether you could afford repayments at a rate at least 3 percentage points above the loan rate. After several rate rises in 2026, some borrowers who passed that test easily a few years ago now find it harder. Our article on why borrowing capacity has reduced explains why.
Equity matters too. If your loan is more than 80% of your home’s value, a new lender may charge lenders mortgage insurance again, which can wipe out the savings. On the other hand, if your property has grown in value, you may have more choice than you think, as our article on refinancing when your home has gone up in value explains. Lender policies vary, so if one lender says no, another may still say yes.
If Refinancing Isn’t Possible
If a new lender won’t approve you, negotiating with your current lender is still worthwhile, and a lower rate or a split can ease the pressure. If the new repayments look unmanageable, however, contact your lender early and ask about hardship options before you fall behind. Free, confidential help is also available from financial counsellors through the National Debt Helpline. Acting before the fixed rate ending date gives you the most room to move.
What Switching Costs
Before you move, add up the full cost of switching. Typical costs include:
- A discharge fee from your current lender.
- Application, valuation or settlement fees from the new lender (some lenders waive these).
- Government fees to register the new mortgage and discharge the old one.
- Lenders mortgage insurance if you have less than 20% equity.
- Break costs if you leave before your fixed rate ending date.
The Moneysmart mortgage switching calculator shows how long it takes to recover these costs. Also, keep your remaining loan term in mind: resetting to a fresh 30 years lowers repayments but can add a lot of interest over time.
Shire Owners Coming Off Older Fixed Rates
Many long-term Shire owners, particularly around Menai, Bangor and Illawong, fixed their loans in earlier years and haven’t reviewed them since. Their equity has often grown, which can open up better options when the fixed rate ending date arrives. Our refinancing page covers how we review a loan, and our Sutherland Shire hub lists the areas we cover. We’re based in Bangor, NSW, and we also help clients across Australia by phone and video.
Fixed Rate Ending FAQs
Timing and Costs
Your loan usually moves to the lender’s variable revert rate, and your repayments change to match. You can still negotiate or refinance later.
Generally, no. Break costs usually apply only if you leave or change a fixed loan before the fixed term finishes. Check the terms of your loan to be sure.
About three months ahead is a good rule of thumb. That leaves time to negotiate, compare lenders and, if needed, complete a refinance before the expiry date.
Refinancing
Possibly. Lenders assess serviceability differently, so one may approve you when another won’t. If refinancing isn’t possible, negotiating with your current lender is still worth doing.
If you borrow more than 80% of the property’s value with the new lender, you may have to pay LMI again. A current valuation will show where you stand.
Get a Plan Before Your Fixed Rate Ends
We compare your lender’s offer with dozens of others, check whether refinancing is realistic, and handle the paperwork if switching makes sense. Start the conversation a few months out so every option stays open.
Prefer to talk now? Call Shannon on 0402 283 480.
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation.
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