Coming Off a Fixed-Rate Home Loan? Here’s How to Prepare
Navigating the End of Your Fixed Loan Period
They say all good things come to an end—including historically low fixed-rate home loans.
For many Australians, the fixed-rate period will soon expire, meaning it’s time to prepare for potential higher repayments.
📌 According to Australian Bureau of Statistics (ABS) data, 46% of home loans taken out in July 2021 were fixed, marking the peak period for locking in low interest rates.
That means the bulk of fixed-rate loans will revert between July and December 2023 (Reserve Bank of Australia (RBA) research).
💡 Let’s explore your three key options: reverting, refixing, and refinancing.
1. Reverting to a Variable Rate
What Happens When Your Fixed Term Ends?
If you don’t take action, your home loan automatically switches to a standard variable rate—which could lead to significantly higher repayments.
📌 RBA Deputy Governor Michele Bullock warned that half of fixed-rate borrowers may experience repayment increases of at least 40% when rolling onto variable rates in mid-2023.
🔎 Want to check current variable rates? Visit the Reserve Bank of Australia’s website for updates.
2. Refixing Your Home Loan
Is Refixing an Option?
Depending on your loan agreement, you may have the chance to refix your loan with your current lender.
However:
❌ With recent rate hikes, it’s unlikely your lender will offer rates as low as before.
✅ There is room for negotiation, so it’s worth discussing your options.
📌 Consider shorter fixed periods (2–3 years) to balance rate certainty with future refinancing flexibility.
3. Refinancing for a Better Deal
Could You Save by Switching Lenders?
If your current lender isn’t offering favourable terms, refinancing elsewhere could secure a better rate.
📌 The home loan market is highly competitive, with lenders seeking borrowers who have strong equity and repayment histories.
✅ Refinancing hit record levels in June, according to ABS data.
🚨 Want to explore refinancing options? Visit our dedicated refinancing page: CBM Mortgages Refinancing Guide.
How to Start Preparing Now
Steps to Take Before Your Fixed Rate Ends
🔹 Build a savings buffer – Prepare for higher repayments
🔹 Cut back unnecessary expenses – Free up more cash flow
🔹 Consult a mortgage broker early – Compare reverting, refixing, and refinancing options
📞 Speak to CBM Mortgages today to find the best strategy before your fixed-rate expires!
Read our blog Fixed v Variable here or our Fixed rate explainer blog post here
Disclaimer
This article provides general information only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker to assess your personal situation before making any financial decisions.
Written by Craig McDonald 14/06/2025
