16 July 2026 - 7 min read

Understanding your choices well before your fixed term expires can help you avoid paying more interest than necessary. You may be able to negotiate a new fixed or variable rate with your current bank, restructure your loan, or move to another lender.

In this article, we run through what happens, how lenders manage the transition, and what it could mean for your repayments. Then we suggest steps you could take to compare rates, refinance, and potentially save money before moving automatically onto what could be a higher variable interest rate.

Key take-outs

• When a fixed-rate home loan expires, you could re-fix it, split it into two types of loan or roll it over to a variable interest rate loan.
• Consider your financial situation and needs early – plus the financial markets and forecasts – before choosing an option.
• If you’ve automatically rolled over to variable, you may be able to switch back to fixed at any time.

Questions answered

• What are the options when my fixed rate home loan term ends
• What’s the difference between fixed and variable?
• What happens if interest rates drop during my fixed rate term?
• How do I re-fix my home loan?
• How do I split my home loan?

1. What are the options when my fixed interest rate term ends?

When your fixed term expires, you'll have options, which may include:

1. Re-fix your loan,
2. Automatically roll onto a variable interest rate (known as a revert rate), or
3. Split your home loan.

Before deciding on one, consider factors such as your circumstances, future financial goals, and current market trends – as they could have changed. You can calculate the estimated repayments of a new loan with our rate change calculator.

Westpac offers fixed rate terms from 1 to 5 years and, depending on the period you select, will guarantee the interest rate you'll pay for that term. You’d have chosen a fixed rate term when you initially locked in your interest rate, so your lender will only get back in touch with a new offer close to expiry. If you’re with Westpac, we’ll be in touch 6-8 weeks before expiry detailing your new repayments and options.

If you're an existing customer of Westpac, you'll have your loan switched automatically to a standard variable home loan with optional offset after your fixed rate expires, so you won’t need to do anything if that's your preference. But, before you make any decisions, it's always wise to review your options to ensure they meet your needs now and into the future.

Why should I review my home loan?

Whenever there’s a change in circumstances, whether personal, market conditions or to do with your home loan set up, it's time to review your loan – especially when your mortgage is coming off a fixed rate period. Consider planning ahead at least 3 months before expiry, as this gives you the time to arrange any changes with your current lender in the last few weeks.

How do I review my home loan?

Factors you may wish to consider include:

Your circumstances

• Is there a change in your financial situation, such as a new job or loss of income?
• Are you expanding your family, or thinking of downsizing?
• Will you plan to sell your home or use your equity to renovate or buy an investment property?

The market

• What's happening with the economy and housing market?
• What's happening with interest rates and are they predicted to go up or down?
• Could changes in the market affect your decision on keeping your home or mortgage?

Your loan

• How long have you had, and how long do you intend to keep, your home loan?
• Are you paying principal and interest or interest only repayments?
• What features are available on your loan, and are you using them effectively?
• Could you be getting a more competitive rate?
• What are your fixed expiry options?

Please be aware that this is not a complete list of factors. You should consider seeking independent financial advice specific to your objectives and needs.

Can I extend my fixed rate period?

No. Once your loan term's expired, your lender will provide you with a new fixed rate offer with a new interest rate. They don’t extend fixed rate terms as the wholesale money market – where your lender borrows the money for your fixed rate term – changes daily. When your fixed rate mortgage ends, the wholesale interest rate could be significantly different.

2. What’s the difference between fixed and variable interest rate loans?

The main difference between a fixed and variable home loan is that the interest rate is guaranteed with a fixed rate loan. In contrast, the interest rate could go up or down depending on the economy with a variable loan.

A fixed rate loan generally gives you more certainty, while a variable loan could provide more flexibility.

Fixed interest rate loan – features, benefits and considerations

• Lock in a rate for a set term for added certainty.
• Easier to budget as minimum repayments stay the same over the fixed term.
• Make extra repayments to a set limit during the fixed term. At Westpac, that limit's $30,000.
• Break costs may be charged if you end your fixed term early, make changes to your loan, or exceed the prepayment threshold – though you may be able to avoid them when selling and buying using your loan’s portability feature (if it has one).

Read more about fixed rate home loans.

Standard variable interest rate loan – features, benefits and considerations

• You can change your repayment amount anytime and, at Westpac, you can apply to change your repayment type (for example, switch to interest only).
• You can pay out your loan, make unlimited extra repayments and apply to increase the loan amount.
• Link up to 10 offset accounts on your eligible home loan to use funds to reduce the interest you’ll pay.
• Use portability when selling and buying to avoid the hassle and costs of a new home loan.
• Options may be available to reduce repayments or request a repayment holiday.
• Interest rates on a variable loan may go up or down over the life of the loan, meaning your repayments could increase if rates rise.

Read more about variable loans with offset.

Should I choose a fixed or variable rate?

One is not necessarily better than the other. It all depends on your current situation and future plans. So, weigh up all the pros and cons and use our tools and calculators to see what's available and how much you might pay.

• Compare Westpac home loans to see what mortgage products are available
• Use our home loan calculator to estimate your borrowing power
• Learn about increasing your mortgage
• Estimate what equity you might have in your home that could impact any refinancing options.

3. What happens if interest rates change during my fixed rate term?

If interest rates change during your fixed rate period, you'll have the certainty of knowing exactly what your minimum repayments will be.

If they rise, you'll be happy, but if they fall, you may choose to ride it out – as breaking your fixed rate period could cost you more in break costs than the benefits you’d gain from a lower rate.

4. How do I re-fix my home loan?

In most cases, lenders will send you a pre-expiry letter telling you that your repayments are changing, and how to re-fix before your current fixed rate term ends.

If you're with Westpac, book a callback up to two weeks before your fixed term ends to re-fix your loan. Or call us on 132 558. If you don’t want to re-fix, your loan will automatically roll over to a variable rate loan when your fixed term expires.

Review your options.

How can I fix my home loan if my previous fixed term has already expired?

Most lenders will let you fix your rate again at any time. Remember, before fixing your entire loan, you’ll need to consider what you’d like to do with any redraw funds available in your variable home loan account, and any funds you may have in any linked offset account.

5. How do I split my home loan?

Once your fixed rate ends and you roll onto a variable rate loan, you can generally choose to fix your entire loan balance, or a portion of it – called a split home loan.

At Westpac, you can do this anytime in 3 steps:

1. In Online Banking, open your loan’s drop-down menu, then select Switch to fixed rate. Or, in the Westpac App, select your loan, scroll down to Home loan settings, then select Switch to fixed rate.
2. Choose to fix a portion (split) or your entire loan.
3. Select the number of years, follow the prompts and submit.

Like to talk to us instead? Book a callback.

In summary

When your fixed-rate home loan expires, you can re-fix it, split it to two types of loan, or roll it over to a variable interest rate loan – the choice is yours. There are pros and cons to all options, so plan ahead at least 3 months before your fixed term ends, weigh up the alternatives, consider market trends, and seek independent financial advice if necessary.