Your fixed rate expires in 90 days. Your lender already knows what happens next. Do you?
Here's what most borrowers don't realise: when your fixed period ends, you don't get a call offering you the best available rate. Your loan quietly rolls onto your lender's standard variable rate — often their least competitive product. No negotiation. No comparison. Just a higher rate, applied automatically.
That default rollover could cost you hundreds of dollars a month. And every week you don't act is a week you're paying it.
What Actually Happens When Your Fixed Rate Ends
When your fixed term expires, your lender switches your loan to a variable rate. In most cases, this happens automatically — you don't need to do anything, which is exactly the problem.
The rate you land on is typically the lender's standard variable rate (SVR). This is not the same as the rate they advertise to new customers. It's a "back book" rate — higher, less competitive, and designed for borrowers who don't ask questions.
According to the RBA, the gap between what existing borrowers pay and what new customers receive — sometimes called the "loyalty tax" — has been a persistent feature of Australia's home loan market.
The practical impact: If you fixed at 5.49% two years ago and your lender's SVR is 7.20%, your repayments on a $650,000 loan jump from roughly $3,675 to $4,420 per month. That's an extra $745 a month — or $8,940 a year — landing without warning if you haven't planned ahead.
Illustrative figures based on principal and interest repayments over 30 years. Actual rates vary by lender and product.
The Rate Environment Right Now (July 2026)
Understanding the current cycle matters when deciding your next move.
The RBA cut the cash rate three times in 2025 — from 4.35% to 3.60%. But inflation proved stubborn. In February, March and May 2026, the RBA raised rates three times, taking the cash rate back to 4.35%, then held in June. The next decision is Tuesday 11 August 2026, with most of the big four banks believing the peak has been reached — though a further hike remains possible if inflation stays above the 2–3% target band.
What this means for your decision:
This is a plateau with upside risk — rates aren't falling, and they could go higher. For borrowers whose fixed rates are expiring, this creates a specific challenge: refixing now means locking in at elevated rates, but staying variable means exposure if the RBA hikes again.
Neither option is obviously "right." The best choice depends on your loan size, your buffer, and how much rate uncertainty you can absorb. That's where modelling beats guessing. Read: Fixed vs variable — which is right for you? →
Your Four Options at Expiry
You're not stuck with whatever your lender gives you. Here's what's actually on the table.
Option 1 — Roll onto variable (do nothing)
Your loan reverts to the SVR automatically. This is the most expensive default for most borrowers. If you choose variable, at least negotiate the rate — your lender's best variable offer is almost always lower than the SVR they'll auto-assign. Read: How to negotiate your home loan rate →
Best for: Borrowers who want maximum flexibility (extra repayments, redraw, no break costs) and expect rates to fall within 6–12 months.
Option 2 — Refix with your current lender
Lock in a new fixed rate for 1–5 years. Gives you certainty, but comes with conditions — if you break early, break costs apply, and you lose the ability to make unlimited extra repayments.
Best for: Borrowers who want repayment certainty and believe rates will stay flat or rise. A 1–2 year fix limits your downside while keeping future flexibility.
Option 3 — Split your loan
Fix a portion (say 60%) for certainty and leave the rest variable for flexibility. This is the "hedge both sides" approach. Not flashy, but practical.
Best for: Borrowers who want some protection from rate rises but don't want to lose access to extra repayments entirely.
Option 4 — Refinance to a new lender
Move your loan entirely. This is where the biggest savings often sit — because a new lender will offer you their front-book rate, not a back-book SVR. Switching costs for variable-rate loans typically run $500–$1,500.
Best for: Borrowers whose current lender won't match market rates, or whose circumstances have improved (higher income, lower LVR, career progression) since they originally fixed.
If you're not sure whether refinancing is worth the switch, start here: Should you refinance your home loan? →
Same Loan. Two Paths. Very Different Outcomes.
Meet Dr Anita. She's a senior registrar who fixed a $700,000 loan at 5.29% two years ago. Her fixed term expires in October 2026. Her property has grown from $920,000 to $1,020,000, dropping her LVR from 76% to roughly 69%.
Path A — "Does nothing. Rolls onto SVR."
Anita's loan reverts to her lender's standard variable rate of 7.05%.
- New monthly repayment: ~$4,680
- Increase from fixed: +$810/month
- Extra cost over 12 months: ~$9,720
- She stays on this rate until she remembers to do something about it
Path B — "Acts 90 days early. Refinances through a broker."
Anita's broker models her across 45+ lenders. Her improved LVR (69%) and higher income (now $195,000 as a senior registrar) qualify her for a rate of 5.89% with a new lender. Switching costs: $1,100.
- New monthly repayment: ~$4,145
- Saving vs SVR rollover: $535/month
- Annual saving: ~$6,420
- Break-even on switching costs: ~2 months
- Over 3 years: ~$19,260 saved vs doing nothing
The gap
In Path A, Anita pays $9,720 extra in the first year alone — money she didn't budget for and didn't need to spend. In Path B, she recouped her switching costs in two months and saved $19,000+ over three years. Same loan. Same borrower. Different outcome.
Based on typical scenarios. Individual outcomes vary. Rates and policies are subject to change.
The 90-Day Countdown — What to Do and When
Don't wait for your lender's letter. Start here, 90 days before your fixed term ends.
Day 90 — Know your numbers. Check your expiry date, your current rate, your remaining balance, and your estimated property value. Calculate your approximate LVR.
Day 75 — Get a rate comparison. Wity Negotiate scans your loan against 45+ lenders in one sitting. You'll see what's available for your specific LVR, income, and loan size — not just generic rate tables.
Day 60 — Decide your path. Refix, go variable, split, or refinance. If refinancing, this is when to submit the application — settlement takes 4–6 weeks, and you want it completed before your fixed term lapses.
Day 30 — Lock it in. If refixing or refinancing, confirm the rate and sign. If going variable, call your lender and negotiate — never accept the SVR without asking for their best offer.
Day 0 — Expiry. If you've done the work, this day is a non-event. If you haven't, your lender just gave you their most expensive product.
Are You in Mortgage Prison?
One important caveat: some borrowers want to refinance but can't. If your property value has dropped, your LVR has worsened, or new serviceability rules mean you no longer qualify under a different lender's criteria — you may be stuck. This is sometimes called mortgage prison.
If that's your situation, it's not hopeless. Internal refinancing (switching products within your existing lender), negotiating a retention rate, or restructuring your loan can still deliver meaningful savings. A broker who understands the mechanics can often find a path that a direct-to-bank approach misses.
What To Do Next
Your fixed rate has an expiry date. Your options don't — but the best ones narrow the closer you get.
Not sure where you stand? Book a 15-minute call → and we'll model your options before the clock runs out. No pressure, no credit check, just clarity on what comes next.
