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A fixed rate has a hard end date, and what happens on that date is written into your loan contract: unless you act, the loan rolls automatically onto the lender's revert rate. For many borrowers that means a sudden, sometimes steep, jump in repayments — the so-called fixed rate cliff. The good news is that this is the most predictable event in your loan's life. You know the date months in advance, which means you can plan for it rather than be ambushed by it.
On the expiry date, your loan does not pause or require renewal — it simply converts to the variable arrangement specified in your contract, called the revert rate or roll-off rate. Three things typically change at once:
Most lenders write to you before expiry, but the letter usually presents their own re-fix offers rather than the whole market. Treat it as a prompt, not a menu.
Revert rates exist for borrowers who do nothing, and lenders price them accordingly. The gap between a lender's revert rate and the rate it offers a new customer for the same loan can be significant — this is the same new-versus-existing customer dynamic behind the loyalty tax on home loans. Rolling onto the revert rate and staying there is, in effect, volunteering to pay that tax. Even if you ultimately stay with your lender, you should never simply accept the revert rate without asking for better.
Timing matters more with fixed expiries than any other refinance trigger, because acting early avoids break costs and acting late means weeks on the revert rate. A sensible timeline:
If the cliff has already happened and you are on the revert rate now, nothing is lost except a few weeks of interest. The same steps apply; start today rather than waiting for a better moment.
Free, instant, and no details required — see roughly what lenders could approve for you.
Re-fixing suits borrowers who value repayment certainty and are happy with their lender. Before you lock in again, remember what fixing involves:
A split loan — part fixed, part variable — can give partial certainty while keeping an offset and unlimited extra repayments working on the variable portion.
Going variable is not the same as passively accepting the revert rate. A deliberate move to variable means negotiating a competitive variable rate (or refinancing to one) and taking advantage of the flexibility: unlimited extra repayments, full offset and redraw, and no break costs if you later refinance or sell. Variable suits borrowers who want to pay the loan down aggressively or who expect to move, sell or restructure within a couple of years. The trade-off is that your repayments move with the market, in both directions.
Fixed expiry is the cleanest refinancing window you will ever get: no break costs, a known date, and maximum leverage. A refinance makes particular sense if your lender will not match the market, if your LVR has improved into a cheaper pricing band, or if your loan's features no longer fit. It is a full application — income, expenses and credit assessed under responsible-lending rules with a buffer of around 3 percentage points above the actual rate — and it comes with modest discharge and government fees. Our step-by-step refinance guide covers the process, and the refinance page covers what lenders look for.
Whatever you choose, your repayment is likely to change at expiry. Work out the new number early using a repayment calculator with your balance, remaining term and a realistic post-expiry rate. If the jump is uncomfortable, you have options that are all easier to arrange before you are under pressure: negotiating harder on rate, extending the loan term (which cuts the monthly repayment but increases total interest), or building a buffer in the months before expiry by paying the higher amount early into savings or your offset. If genuine hardship looms, talk to your lender before you miss a repayment — every lender has a hardship team and early contact preserves your options and your credit file.
A broker can compare your lender's re-fix offer against the wider market, handle the repricing conversation, and time a refinance so it settles at expiry with no break costs. If your fixed term ends in the next few months, get in touch — the earlier the review starts, the more options stay open.
The revert rate (or roll-off rate) is the variable rate your loan automatically switches to when a fixed term ends, as set out in your loan contract. It is typically higher than the rates the same lender offers new customers, because it is priced for borrowers who take no action.
Lenders generally write to you in the weeks before expiry with their re-fix options, but the notice usually only presents that lender's own offers. Do not rely on it for timing — find your expiry date yourself and start reviewing the market two to three months beforehand.
Yes, but exiting a fixed rate early can trigger break costs, which vary with your balance, the time remaining and how funding rates have moved since you fixed. Ask your lender for a payout figure including break costs, then compare it against the savings. Many borrowers instead time settlement of the new loan to land at expiry, when break costs no longer apply.
It depends on what you value. Re-fixing buys repayment certainty at the cost of flexibility and potential break costs; variable offers unlimited extra repayments, full offset use and freedom to refinance, at the cost of rate movement. A split loan can capture some of each. The right answer follows from your plans over the next few years, not from predicting rates.
Act before the expiry, not after a missed payment. Options include negotiating a lower rate, refinancing, extending your loan term to reduce the monthly repayment, or a split structure. If the shortfall is serious, contact your lender's hardship team early — assistance arrangements exist, and engaging before arrears appear protects your credit file and keeps more options open.
This article is general information only and doesn't consider your personal objectives, financial situation or needs — it isn't personal credit advice, and lending criteria, rates, fees and government schemes change. Before acting, speak with a licensed MakeMyLoan broker or credit representative who will assess your circumstances and provide a credit guide before any credit assistance is given.
