Coming to the end of a fixed-rate home loan can mean a significant change to your repayments. Rather than waiting for your fixed period to expire, it can make sense to review your options early and understand what happens next.
If your fixed rate is approaching its expiry date, our home loan refinancing service explains how CBM Mortgages can help you review your existing loan, compare suitable alternatives and understand whether staying with your current lender or refinancing may be appropriate.
The important point is not to assume that your current lender’s post-fixed-rate option will automatically be the most suitable one. Your interest rate, loan features, lender options and personal circumstances may all have changed since you originally fixed your loan.
What happens when a fixed-rate home loan ends?
When the fixed period on your home loan expires, the loan will generally move to the variable interest rate specified by your lender unless you arrange something different.
That can mean your repayment changes.
How much it changes will depend on factors including:
- the interest rate you fixed at;
- the variable rate that will apply when the fixed period ends;
- your outstanding loan balance;
- your remaining loan term;
- whether your loan is principal and interest or interest only; and
- any alternative loan structure you arrange before expiry.
Your lender should provide information about what will happen when your fixed period ends, but you do not necessarily need to wait until the expiry date to start reviewing your options.
What was the fixed-rate mortgage cliff?
The term “fixed-rate cliff” became widely used in Australia when large numbers of borrowers who had fixed their home loans at very low interest rates during 2020 and 2021 approached the end of those fixed periods.
As interest rates subsequently increased, many borrowers faced moving from historically low fixed rates onto substantially higher variable rates.
That particular wave of fixed-rate expiries was a product of an unusual period in the Australian home loan market. However, the underlying issue remains relevant to any borrower approaching the end of a fixed term: what will your loan look like once the fixed rate disappears?
Why should you review your loan before the fixed rate expires?
Reviewing your home loan before the fixed period ends gives you time to understand your choices rather than simply accepting whatever happens automatically.
A review can help you establish:
- the variable rate your existing lender expects to apply;
- what your estimated repayments may become;
- whether your lender can offer another suitable fixed or variable option;
- whether a split fixed-and-variable structure may be worth considering;
- what competing lenders may offer;
- whether refinancing costs could outweigh the potential benefit; and
- whether your current loan features still suit your circumstances.
Starting early can also give you time to obtain documents and deal with any issues that may affect a new loan application.
How early should I review a fixed-rate home loan?
You do not need to wait until the week your fixed rate expires.
Starting a review a few months before the fixed period ends can provide useful time to understand your lender’s proposed rate and investigate alternatives.
The right timing can depend on your lender, the remaining fixed period and whether changing the loan early could result in break costs.
Before making changes during a fixed period, check the terms of the existing loan and obtain an up-to-date figure for any break costs that could apply.
Should I refix, go variable or split my home loan?
There is no single answer that suits every borrower.
Refixing may provide repayment certainty for another agreed period, but it can reduce flexibility and may involve break costs if you need to change the loan before that new fixed term ends.
Moving to a variable rate may provide greater flexibility and access to features that are not always available with fixed loans, but repayments can change when the lender changes its variable interest rate.
Splitting the loan between fixed and variable portions can combine some repayment certainty with some variable-rate flexibility.
The appropriate structure depends on your circumstances, plans and tolerance for repayment changes rather than a prediction about where interest rates will move next.
What is happening with Australian interest rates?
Interest rates can change considerably during even a relatively short fixed-loan period.
The Reserve Bank of Australia increased the cash rate target to 4.85% in November 2026.
The cash rate is not the same thing as your home loan interest rate, and lenders make their own pricing decisions. However, changes in funding costs and monetary policy can influence the rates available to borrowers.
Rather than trying to predict the next Reserve Bank decision, it can be more useful to compare the loan options available for your circumstances when your fixed period is approaching expiry.
Will I automatically qualify to refinance?
No. Refinancing involves a new credit assessment.
A new lender may consider your income, living expenses, existing debts, credit limits, credit history, property value and the amount you wish to borrow.
The Australian Prudential Regulation Authority has maintained a mortgage serviceability buffer of 3 percentage points. Individual lenders may also apply their own lending policies and assessment requirements.
That means a borrower who qualified for a home loan several years ago should not assume that refinancing will automatically be approved today.
If credit history is a concern, our guide to refinancing with bad credit explains some of the factors lenders may consider and the options that may be available.
Should I stay with my existing lender?
Possibly. Refinancing should not be treated as the automatic answer when a fixed rate ends.
Ask your existing lender what rate and loan structure will apply after the fixed term and whether better pricing is available.
You can then compare that offer with suitable alternatives.
A comparison should consider more than the headline interest rate. Relevant factors may include:
- ongoing fees;
- discharge and switching costs;
- loan features;
- offset or redraw facilities;
- repayment flexibility;
- the remaining loan term; and
- the overall cost and suitability of the loan.
If you are unsure how your proposed post-fixed rate compares with the broader market, our guide to comparing your home loan explains how to assess whether your existing loan remains competitive.
What should I have ready for a fixed-rate review?
Before reviewing your options, it can help to have:
- your fixed-rate expiry date;
- your current interest rate;
- your outstanding loan balance;
- your remaining loan term;
- your current repayment amount;
- the lender’s proposed rate after the fixed period;
- details of your current loan features; and
- an approximate indication of your property’s current value.
If you are unsure of the interest rate or loan details currently applying, our guide on checking your current home loan interest rate explains where to start.
Frequently asked questions
What happens when my fixed-rate home loan ends?
When the fixed period ends, your loan will generally move to the variable rate specified by your lender unless you arrange a different loan or structure. Your repayments may therefore change when the fixed rate expires.
How early should I review my loan before the fixed rate expires?
Starting a review a few months before expiry can provide useful time to understand your lender’s proposed rate and investigate alternatives. The appropriate timing can depend on the lender, the remaining fixed period and whether break costs could apply.
Should I fix my home loan again when the fixed period ends?
That depends on your circumstances. Refixing can provide repayment certainty, while a variable loan may provide greater flexibility. A split loan may also be an option. The costs, features and implications of each structure should be considered before deciding.
Can I refinance before my fixed rate expires?
Potentially, but changing or repaying a fixed-rate loan before the fixed period ends can result in break costs. Obtain an up-to-date break-cost figure and compare the total costs and potential benefits before making a decision.
Can CBM Mortgages help before my fixed rate ends?
Yes. CBM Mortgages can review your existing loan, help you understand what may happen when the fixed period ends and compare suitable options based on your circumstances.
Is your fixed-rate home loan approaching its expiry date?
CBM Mortgages can review your existing home loan, explain your options and help you compare suitable fixed, variable and refinancing alternatives before your current fixed period ends.
Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax or credit advice. Interest rates, lender policies, fees, break costs and lending criteria can change. Consider your circumstances and obtain advice appropriate to your situation before changing a loan or applying for credit.
Written by Craig McDonald. Updated November 2026.
