If your fixed rate home loan is expiring in 2026, you’re not alone.

Thousands of Australian borrowers who fixed their mortgage in 2022–2023 are now rolling off mid-4% fixed rates and onto significantly higher variable rates.

For many households, this doesn’t just mean a small increase — it can commonly mean repayments rising by $200 to $1,200+ per month, depending on loan size.

At Greenline Home Loans, we’re speaking with borrowers every week who are surprised by what happens when their fixed rate ends.

Here’s what actually happens, how it impacts your repayments, and what you should be doing right now.

What Happens When Your Fixed Rate Ends?

When your fixed term expires, your lender will typically:

• Automatically move your loan to their standard variable rate
• Adjust your repayments to reflect the new rate
• Continue the remaining loan term (unless you restructure)

Importantly:

You do not automatically move onto the lender’s best variable rate.

Most borrowers are placed onto a revert rate, which is often higher than the most competitive rates currently available.

If you take no action, your repayments simply increase.

Real-World Example: The 2026 Fixed Rate Cliff

Let’s look at a realistic scenario.

Borrower profile:

• Loan amount: $700,000
• Fixed rate secured in 2023: 4.19%
• Fixed term: 3 years
• Expiring in 2026
• New revert rate: 6.49%
• Remaining loan term: 27 years

During Fixed Period (4.19%)

Approximate monthly repayment: $3,420 per month

After Fixed Rate Ends (6.49%)

Approximate monthly repayment:$4,520 per month

That’s an increase of roughly:

 $1,100 per month

Or over $13,000 per year.

For many households, that’s not just inconvenient — it’s significant.

Why 2026 Is Different

This fixed-rate rollover wave is happening during a period of:

• Higher interest rates than 2023
• Tighter serviceability testing
• Increased cost-of-living pressures
• More cautious bank lending policies

Borrowers are feeling a double squeeze:

1. Higher repayments
2. Reduced refinancing flexibility

Doing nothing is rarely the best option.

Your Strategic Options When Your Fixed Rate Ends

There are typically five pathways.

1. Refinance Before Expiry

Often the smartest move — but timing matters.

Refinancing before the fixed term ends can:

• Avoid being stuck on a high revert rate
• Secure a sharper variable rate
• Allow restructuring (split loans, offsets, etc.)
• Potentially reduce repayment shock

Ideally, review your loan 90–120 days before expiry.

2. Negotiate With Your Current Lender

Many borrowers don’t realise this is possible.

Lenders may:

• Offer retention pricing
• Provide rate discounts
• Match competitor rates (if pushed)

But they won’t automatically offer their best rate.

3. Restructure the Loan

Sometimes the rate isn’t the only lever.

Options may include:

• Splitting part fixed / part variable
• Extending the loan term (to lower monthly repayments)
• Switching to interest-only temporarily
• Using offset accounts strategically

This can soften repayment shock significantly.

4. Access Equity Strategically

Many borrowers coming off fixed rates are also:

• Renovating
• Upgrading
• Consolidating higher-rate debt

Understanding your current equity position is critical — especially if property values have changed since you fixed.

5. Do Nothing (Usually the Most Expensive Option)

Staying on a revert rate without review often means:

• Paying more than necessary
• Missing refinance offers
• No structural optimisation

In 2026, lenders are competitive — but only for proactive borrowers.

What If You’re Worried You Can’t Refinance?

A common concern:

“Rates are higher now — what if I don’t pass servicing?”

This is where lender choice becomes critical.

At Greenline Home Loans, we work with:

• Major banks
• Second-tier lenders
• Specialist and non-bank lenders

Different lenders assess servicing differently.

In many cases, we can:

• Identify lenders with more flexible servicing models
• Structure loans to improve approval outcomes
• Secure approvals where a single bank may decline

The same borrower can receive very different results depending on the lender.

Refinance vs Revert: A Smarter Comparison

Let’s revisit our $700,000 loan example.

If You Do Nothing (Revert Rate 6.49%)

Monthly repayment: $4,520 per month

Total interest paid over the next 5 years (approximate): $215,000

If You Refinance Strategically (Example Only: 5.89% + Offset)

Monthly repayment: $4,220 per month

That’s a saving of around:
$300 per month
$3,600 per year

Over five years, that’s approximately:
$18,000+ saved

And that’s before factoring in:

• Using an offset account effectively
• Splitting part of the loan
• Structuring repayments more efficiently
• Potential refinance cashback incentives

When structured properly, the difference can easily exceed $20,000–$30,000 over several years.

Why This Matters

A $300 monthly saving might not sound dramatic at first glance.

But in today’s environment, that can mean:

• Covering groceries for a family
• Funding private school fees
• Building a stronger buffer
• Offsetting cost-of-living pressures

And importantly:

The difference between reverting and refinancing is often simply whether you review your loan before expiry.

The Bottom Line

If your fixed rate is expiring in 2026, your repayments are likely about to increase.

But you are not stuck.

With the right lender strategy and loan structure, many borrowers can:

• Reduce repayment shock
• Secure better rates
• Improve flexibility
• Strengthen their long-term position

At Greenline Home Loans, we specialise in helping borrowers navigate fixed rate expiries, refinance strategically, and structure loans properly in today’s environment.

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