When a fixed rate home loan term ends, your loan will generally roll into your lender’s standard variable rate unless you choose another option. Depending on current interest rates, this change could increase your repayments and impact your household budget.
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.
When your fixed term expires, you'll have options, which may include:
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.
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.
Factors you may wish to consider include:
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.
If you’re a Westpac customer, get in touch with us up to 6 to 8 weeks before expiry if you’d like us to review your Westpac rate and options, or to re-fix your home loan over the phone, call up to 2 weeks before the fixed rate expires.
We'll run through the latest home loans and their features, explain any new offers that give you a better deal, and talk about home loan packages that could help you save on interest and pay off your home loan sooner.
Call Westpac on 132 558 8am-8pm (Sydney time) 7 days a week, or request a callback.
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.
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.
Read more about fixed rate home loans.
Read more about variable loans with offset.
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.
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.
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.
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.
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:
Like to talk to us instead? Book a callback.
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.
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This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.