If you locked in a low fixed-rate home loan a few years ago, chances are that term is coming to an end — and you might be in for a shock. When a fixed-rate loan expires, many borrowers automatically roll over to their lender’s “revert rate”, which can be significantly higher than their old rate.
With the RBA keeping rates elevated in 2025, understanding what happens next could save you hundreds (or even thousands) every month.
What Is a “Revert Rate”?
When your fixed-rate period ends, your lender will move you onto a variable interest rate — often called the revert rate.
This rate is usually much higher than what new customers are being offered, meaning you could start paying far more than you need to.
For example, if you were on a 2.09% fixed rate and your revert rate is now 7.00%, your repayments on a $600,000 loan could jump by more than $1,300 per month.
Many borrowers let their fixed period roll over automatically — and that’s where the trap lies.
Banks count on inertia; if you don’t take action, you’ll quietly end up paying thousands in unnecessary interest over time.
The good news? You have options — and the earlier you plan, the better.
Your Options When a Fixed Loan Ends
1. Refinance to a Better Deal
Now is the perfect time to compare lenders and secure a sharper rate. A mortgage broker like 2k Finance can compare dozens of lenders and negotiate directly with banks on your behalf — often unlocking deals that aren’t advertised publicly.
2. Ask Your Current Lender for a Discount
If you’d rather stay with your existing bank, ask for a rate review. Lenders are often willing to match or beat competitor offers — but only if you ask.
3. Consider Splitting Your Loan
Can’t decide between fixed and variable? You can do both. Splitting your loan gives you the security of fixed repayments on part of your balance and the flexibility of variable rates on the rest.
4. Use an Offset Account to Reduce Interest
If you move to a variable rate, make sure you’re using an offset account to your advantage. Every dollar in that account helps reduce the interest you pay.
Don’t wait until your fixed term ends — start planning 3 to 6 months before your expiry date. This gives you time to compare offers, get pre-approval for refinancing, and negotiate from a position of strength.
When your fixed home loan ends, doing nothing could cost you dearly. The revert rate trap is real — but completely avoidable with the right strategy.
At 2k Finance, we help homeowners across Australia find smarter, more affordable loan solutions.
Book a free home loan review today and see how much you could save.
