If your fixed rate home loan expires in less than 12 months, it’s a good idea to start thinking about what could happen when your fixed rate term ends.

Once you’ve done that, you have three options: re-fix, refinance, or revert.

Fix your loan again

Your lender will notify you a month or two before your fixed term ends to discuss your options. If you’re happy with the interest rate and features offered, then you could agree to another fixed term.

Refinance your loan

When it comes to refinancing your home loan, you can stick with the same lender or bank and switch the loan you have, or you can move to another bank or lender.

Switching may get you a better rate as a new customer, but make sure you ask about upfront and ongoing fees or charges, so you don’t end up paying even more each month.

One easy way to do this is to look at the comparison rate – this is the effective rate you’ll be paying once the fees and charges are taken into consideration.

Remember, if you’re leaving your current lender, you will likely be charged exit fees.


If you don’t do anything when the term of your fixed rate home loan is up, the interest rate will revert to a “standard” variable rate set by the lender or bank. This rate is often higher than your fixed rate and could increase your monthly repayments.

You may find the monthly repayment increase is even larger if your fixed term loan is set to expire after your lender’s “standard” rate has risen.

How can I prepare for a rate increase?

If you’re currently enjoying a low fixed rate, you have time to prepare for a rate increase.

One great place to start it to review your current spending and create a budget. This will help you to see what money you have available and know if you’ll be able to afford an increase in repayments when your fixed term ends.

Sticking to a budget will also allow you to save some extra cash. Find out more about how to prepare for a rate rise.

Need more help?

The cash rate, inflation and interest rates can be confusing but we’re here to help.

If you would like to talk to someone about your home loan and get ready for future changes, you can book an appointment to speak with a BCU Bank mobile lender.

Important information

Banking and Credit products issued by Police & Nurses Limited (BCU) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Any advice does not take into account your objectives, financial situation or needs. Read the relevant Product Terms and Condition, before acquiring this product in considering and deciding whether it is right for you. The Target Market Determination (TMD) for products is available on request. Lending criteria, terms & conditions, fees & charges apply.