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Fixed interest home loan terms don’t last forever, so it’s inevitable that you’ll have to decide what to do when yours ends.  

If your fixed term is ending soon, now is the time to review your options to bag a competitive deal on your home loan. 

In this guide, we answer frequently asked questions, outline the process when your fixed rate ends and give you tips and tricks that might come in handy when you roll off your fixed rate. 

%%Could you save when your fixed rate ends?%% 

- __Related: [Fixed, variable or split rate home loans: which is right for you?](https://www.lendi.com.au/inspire/finance/fixed-variable-split-rate-home-loans-which-is-right-for-you/)__
- __Related: [7 ways to prepare your home loan for rising interest rates](https://www.lendi.com.au/inspire/finance/how-to-prepare-your-home-loan-for-rising-rates-2022/)__
- __Related: [How does the RBA cash rate affect home loan repayments?](https://www.lendi.com.au/inspire/finance/how-does-rba-cash-rate-affect-home-loan-repayments/)__

&nbsp;
## What happens when your fixed rate home loan expires? 

At the end of your [fixed term](https://www.lendi.com.au/home-loans/fixed-rate/), your home loan will typically [revert to your lender’s standard variable rate](https://www.lendi.com.au/inspire/finance/what-is-a-home-loan-revert-rate/).  

These rates tend to be much higher than other deals on the market, as lenders will often reserve their more competitive rates for their new customers.  

So, you may end up paying extra in interest by staying with your current lender, also known as [loyalty tax](https://www.lendi.com.au/inspire/insights/aussies-being-charged-banks-loyalty-tax-central-bank-confirms/).

&nbsp;
### Do you need to do anything before your fixed term ends? 

No, you don’t have to do anything before your fixed term ends if you don’t mind rolling onto your lender’s standard variable rate.  

If you’re interested in finding a more competitive deal, it could be a smart move to [start comparing your options](https://www.lendi.com.au/home-loans/basics/refinance/loan-amount) around 3 months before your fixed rate expires. 

If your fixed rate is expiring even sooner, don’t stress – you can [speak to a Lendi Home Loan Specialist](https://www.lendi.com.au/book-appointment/) to speed up the process. 

%%How much can you save by refinancing?%% 

&nbsp;
## Can you extend your fixed term? 

No, it’s unlikely you’ll be able to extend your fixed term, especially if interest rates have gone up.  

You may be able to fix your rate again at the up-to-date rates lenders are offering, but it’s important to do the math to find out if this is a financially smart decision.  

You may need to reach out to a financial advisor if you’d like advice on your specific situation.  

Keep in mind that fixed rate home loans come with a lot of restrictions. So, you won't be able to make unlimited extra repayments, utilise loan features like [offset accounts](https://www.lendi.com.au/guides/offset-account/) or take advantage of lower repayments if interest rates drop during your fixed term. 

&nbsp;
## Which is right for you, a variable or fixed rate home loan? 

There is no one-size-fits-all when it comes to home loans. Whether a variable, fixed or even split rate is right for you will depend on your individual circumstances and needs. 

&nbsp;
### A recap on variable rate home loans 

A [variable rate home loan](https://www.lendi.com.au/home-loans/variable-rate/) will usually come with a lower interest rate and offers more flexibility in way of loan features. Some of these features, which aren’t available for fixed rate home loans, include: 

- Access to more loan features such as offset accounts, redraw facilities and loan portability 
- Ability to make uncapped additional repayments 
- When the cash rate drops, your interest rate will likely also decrease (and vice versa) 
- Easier refinancing. 

&nbsp;
### A recap on fixed rate home loans 

As you’d already know, fixed rate home loans typically have higher interest rates than variable loans, but don’t offer the same flexibility. While they can protect your repayments from increasing, they also prevent you from accessing a lower interest rate should rates drop.  

&nbsp;
### A recap on split rate home loans 

If you want the best of both worlds, a [split rate home loan](https://www.lendi.com.au/home-loans/split/) might be a good option. It allows you to allocate a portion of your loan to a fixed rate and the other to a variable rate. 

%%Have you checked interest rates lately?%%

&nbsp;
## What if interest rates have gone up when your fixed period ends? 

Although interest rates have started to climb, there are still competitive options available.  

While it's true you'll likely see an increase in your repayments when you come off your fixed rate, you can still take the steps to ensure you're not overpaying on your home loan.  

__💡 Tip:__ Find out what rates your lender is offering to new customers and ask to match this 	rate. 

You don’t need to limit yourself to your existing lender – [other lenders](https://www.lendi.com.au/home-loans/basics/refinance/loan-amount) may have more competitive deals.  

Even a marginally lower interest rate could save you thousands of dollars over time, so don’t underestimate the importance of searching for a good deal.  

In saying this, consider the whole loan product and associated fees and charges rather than just the interest rate. 

&nbsp;
### Why are mortgage repayments rising? 

Back in November of 2020, the Reserve Bank of Australia (RBA) dropped the cash rate to an all-time low to stimulate the economy. For 18 months, borrowers enjoyed ultra-low home loan interest rates. 

As a result of lower costs of borrowing, spending rapidly grew, resulting in high inflation rates. 

To steady the growth of inflation, the RBA began increasing the cash rate in May 2022. 

Borrowers are likely to continue to see the cash rate and their repayments rise until the RBA can get inflation to its [target rate of 2-3%](https://www.rba.gov.au/inflation/inflation-target.html). 

%%Try Lendi's Rate Rise Calculator%%

&nbsp;
## How do you prepare for higher repayments when your fixed term ends? 

&nbsp;
### 1. Start comparing home loans today 

The first step in preparing for higher home loan mortgage repayments is being proactive about your home loan before your fixed term ends.  

If you let your loan roll onto to your lender’s [revert rate](https://www.lendi.com.au/inspire/finance/what-is-a-home-loan-revert-rate/), you may not be getting the most competitive deal available to you. 

Consider your options before letting your loan revert. It may be worthwhile conducting some research to find out which loan type—fixed, variable, or split—will suit your needs and help you minimise your repayments. 

&nbsp;
### 2. Get help from the experts 

Before your fixed rate period expires, you might want to speak with a Home Loan Specialist. They can help you figure out the right course of action. 

It might also be worthwhile chatting with a financial advisor to determine what next steps will be ideal for your financial needs and goals. 

%%Book a chat with a Home Loan Specialist%% 

&nbsp;
### 3. Review your household budget 

Evaluate your household budget to see if there are any areas where you can cut costs before your home loan payments start to increase.  

Saving money on necessities like groceries and gas may be challenging when living costs are high. To try and get a better bargain, you could reach out to your electricity, internet, and insurance providers. 

If you haven't compared pricing on bills like house and contents insurance or electricity in a while, you may be able to save money by exploring your options and switching providers. 

__💡 Tip: __You could also look to your discretionary spending on expenses like takeaway food 	and entertainment to free up space in your budget. 

&nbsp;
### 4. Make extra repayments 

While fixed rate loans don’t allow unlimited repayments, they often allow you to make [extra repayments](https://www.lendi.com.au/inspire/finance/pay-off-your-loan-faster-with-extra-repayments/) up to a certain amount.  

Making extra repayments up to the fixed term cap can provide you with an extra [buffer when rates rise](https://www.lendi.com.au/inspire/finance/why-aussie-households-are-years-ahead-of-their-home-loan-repayments/).  

Lowering your outstanding home loan amount could be useful when you roll off your fixed rate, as this will reduce your repayments and interest altogether.  

&nbsp;
You don't have to do it alone – our Lendi Home Loan Specialists can guide you through the process. The best part? You won't even have to leave the comfort of your home. [Book an appointment](https://www.lendi.com.au/book-appointment/) at a time that suits you and we'll be in touch. 

&nbsp;
## What could your home loan repayments look like?

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## Got a home loan question? Just ask!
We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a [Home Loan Specialist here](https://www.lendi.com.au/book-appointment/)

*The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.*