The revert rate trap
When your fixed rate term ends, your loan automatically rolls onto the lender's standard variable rate — often called the revert rate. In most cases, this rate is significantly higher than the best available rate in the market. Many borrowers simply let it happen without reviewing their position, and end up paying thousands of dollars more per year than necessary.
Your action plan — 90 days out
The best time to act is 90 days before your fixed rate expires. This gives you enough time to review the market, select a new product (whether with your existing lender or a new one) and manage the settlement timeline without rushing.
Step 1: Know your revert rate. Call your lender or check your loan documentation to understand what rate you'll revert to. Calculate the monthly cost difference between your current fixed rate and the revert rate.
Step 2: Get a market comparison. A broker will compare your current position against the full market — not just a handful of lenders. This gives you a genuine picture of what's available.
Step 3: Consider break costs. If you're still in a fixed term and want to refinance early, you may face break costs. These need to be weighed against the potential savings. In some market environments the numbers stack up; in others they don't.
Step 4: Don't forget cashback offers. Some lenders offer cashback for refinancing borrowers. These can be a useful offset against the cost of switching, but shouldn't be the primary driver of your decision.
The conversation your bank won't start
Your existing lender won't typically call you before your fixed rate expires to offer you the best available rate. They'll wait for you to ask — and even then, they'll often start with a higher rate than they'd offer to a new customer.
A broker has no incentive to keep you with a higher-rate product. We're paid by the lender when we settle a loan, which means our interest is in finding you the best available outcome — whether that's with your existing lender through a rate negotiation or with a new lender through a refinance.