Revert Rate

What is a revert rate?

A revert rate is the interest rate a home loan moves to after its fixed period ends, unless a different arrangement is made. It is usually a variable rate. The rate quoted when the loan was first taken out may not be the rate that applies at expiry.

Beyond Bank's definition describes a move to the product's variable rate when the fixed period finishes if the borrower does not refix. That is a lender explanation of the term, not a rate offer or a rule that every lender uses identical conditions.

Check the expiry notice before entering a rate

For a repayment estimate, collect the outstanding balance, remaining loan term, repayment type, expiry date and rate that the lender says will apply. Keep any ongoing fees separate. A notice showing an interest rate is not the same as a confirmed monthly repayment amount.

ASIC Moneysmart explains that a fixed period can be followed by a variable rate or another negotiated fixed rate. The fixed rate definition explains why the end of that period is different from the end of the whole loan.

Worked example: use the remaining 25 years

Assume a $500,000 balance at expiry with 25 years remaining, principal and interest repayments each month, no fees, no offset and no extra repayments. These are illustrative rates, not current offers.

Scenario at the same balance and remaining term	Estimated monthly repayment
4.50% a year	$2,779.16
6.00% a year	$3,221.51
Increase using unrounded payments	$442.34

Both rows use the standard monthly amortisation calculation. They isolate the rate difference at the expiry balance; the first row is not necessarily the payment previously charged on the original loan. Actual lender interest accrual and rounding can differ.

Enter the expiry balance and remaining term into the mortgage repayment calculator. Starting again at 30 years would answer a different question and can make the monthly amount look lower by spreading repayment over longer.

Comparing an alternative loan

Use the refinancing checklist to gather written figures. ASIC's switching guide highlights switching costs and the risk of extending the loan term. Include confirmed costs in the refinance break-even calculator. A smaller monthly payment alone does not establish a lower total cost or that a refinance will be approved.

A variable revert rate can change again. One constant-rate calculation cannot predict later repayments, future rates or the outcome of a new application.

General information and indicative examples only, not financial or credit advice, a loan quote, approval or recommendation. Confirm the loan terms with the lender and seek licensed professional help where appropriate.

Last updated: 14 September 2026.