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Trevor L.
Trevor L.
Westleigh, NSW

When my fixed rate loan period ends - do I just automatically switch back to variable with the same lender without having to bother with paperwork etc?

5 years ago


Hi Trevor,

In most cases the loan will automatically revert to the standard variable rate (plus the applicable discount you would be entitled too). However sometimes it doesn't work as smoothly as intended.

The following can occur:
1. Loan was set up for the fixed term ONLY and you need to obtain finance with a new lender altogether (typically a construction or specialist lending scenario)
2. The variable rate goes to the standard variable rate and not the discounted rate that you are entitled too
3. The loan may switch to principal and interest repayments and not interest only. This is relevant if you had your fixed term as interest only

These can all cause some alarm for clients so it's certainly best to discuss with your broker your loan and the structure and how it will proceed to variable to ensure it all goes smoothly. You may also want to re- fix the loan so is a great opportunity to re-assess and see where you are at.

If you want to discuss your loan or compare I'm only too happy to help! Have a great day.

Nicole Cannon :)

Hi Trevor. Generally your lender will let you know about a month prior to the end of the fixed term. There is usually no new paperwork. This is a good trigger for you to call your lender and ask for a better discount on your variable rate.
If they won't come to the party then it is time to look around for a better deal.

If this is what you want to happen then you can be reasonably certain it will.
Your lender will write to you about 4 weeks before the expiry date and provide you with details of the variable loan you will roll into.
When you get the letter call them and say you want a cheaper variable rate.
Check their website before making that call and see what they are offering NEW clients.
That is the rate you want and refuse to accept anything less.
If they don't value your business shop around yourself or go talk to a professional mortgage broker.
Good luck

Hi Trevor,

This is a very common question. Generally in most cases the loan will automatically roll over to a variable loan.
The lenders or banks generally send out a letter about 4 weeks prior to the loan converting over to a variable rate. When this letter is received you need to make contact to ensure that when the loan does change over you are getting the discounted rate that you see entitled to. Also you will need to make sure that the repayment structure & type remains the same.
That being interest only or principle & interest or weekly/fortnightly/monthly.

I hope this helps out. If you would like to discuss further offline please feel free to contact me.

Rebecca A Mitchell.

Great comments everyone!

The only thing i dare to add is your debt specialist that helped you set this up should be in constant contact throughout the fixed loan term i.e. at least annually and should be talking to you about your next steps. You shouldnt need to contact the bank to push for rate drops but your broker should. This is what he is being paid for.

Hi Trevor

Generally speaking you will roll over to a variable rate at the end of your fixed term if you do nothing. There shouldn't be any paperwork involved in this process.

I would recommend talking to your broker to discuss options as the variable rate you get put on probably won't be very competitive in today's market.

You also have the option to go onto a new fixed rate as well if you prefer.

Happy to have a chat any time to discuss further


Don't wait for a lender to offer you the best rate but see a broker to go through your financials and provide options

In your contract it would have stated that the loan will revert to the standard variable rate!
If you are looking at restructuring and finding another suitable product that meets your current circumstances, then speak with a broker like myself and we can source different options available for you!

Yes, however its not normally the nice attractive rate you see advertised. beware :)

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