Fixed Rate Ending? What Perth Homeowners Should Do in 2026
Thousands of Perth homeowners are facing the end of their fixed rate periods, many locked in during 2022 and 2023 when rates were at historic lows. What most don't realise is that letting your loan automatically roll to your bank's standard variable rate could cost you thousands more than necessary.
The good news is you have options before that rollover happens. Whether you're in Subiaco- Mount Lawley or Victoria Park, comparing what's available across lenders could reduce your repayments significantly compared to accepting your current bank's rollover rate.
Launch Finance helps Perth homeowners review their refinancing options as fixed rates end, comparing offers across our wide panel of lenders, completely free of charge.
Here's what you need to know about your options when your fixed rate ends, and how to avoid paying more than necessary.
Key takeaways
- Competitive variable rates start from approximately 5.69% p.a., well below most rollover rates.
- Start comparing options 90 days before your fixed rate expires to avoid a rushed rollover.
- A broker compares multiple lenders simultaneously, often finding rates banks won't offer directly.
Why isn't your bank's rollover rate your best option?
Your existing lender will automatically move you to their standard variable rate when your fixed term ends, and that rate is rarely their sharpest. Competitive variable rates start from approximately 5.69% p.a. as of July 2026, while many bank standard variable rates sit closer to 6.25% p.a. or higher. That gap can cost hundreds of dollars per month on a typical Perth mortgage.
Your existing bank has little incentive to offer you their most competitive rate during rollover. They assume most customers will accept the transition without shopping around. This is exactly why many homeowners find better rates elsewhere, often with the same level of service they're already receiving.
~$3,360 a year
Approximate interest saving on a $600,000 loan at 0.56% p.a. below the average standard variable rate.
What should you do when your fixed rate is ending?
Start comparing options 90 days before your fixed rate expires. Most lenders can process a refinancing application within 30 to 45 days, so this timing gives you room to secure a better rate before the rollover happens. You can negotiate with your current lender or explore what other lenders offer. The key is having options lined up before the decision is made for you.
What costs and rules apply when refinancing?
Key refinancing considerations to know about:
- › RBA cash rate: currently 4.35% as of July 2026, following three increases in 2026 (February, March and May). Variable rates are typically priced 1 to 2% above this base rate depending on the lender and loan features.
- › APRA serviceability assessment: refinancing applications are assessed at approximately 8.7% (your offered rate plus the 3.0% buffer) to ensure you can service repayments if rates rise further.
- › Switching costs: discharge fees from your current lender (typically $300 to $600) plus application fees for the new loan, though many lenders offer fee rebates or cashback offers to refinancing customers.
- › Loan-to-value assessment: your current property value determines your borrowing options. If your home has grown in value since you bought, you may qualify for better rates or remove lenders mortgage insurance.
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How does refinancing work for Perth homeowners, step by step?
Step 1: Talk to us
Get in touch and we'll review your current loan, property value, and what rates are available across our wide panel of lenders for your situation.
Step 2: Property valuation and income assessment
We coordinate a property valuation to establish your current loan-to-value ratio and assess your income and expenses to confirm your borrowing capacity with potential new lenders.
Step 3: Compare offers and terms
We present you with the most competitive offers, explaining rate differences, fees, features, and offset account options so you can make an informed decision.
Step 4: Submit your preferred application
We lodge your application with your chosen lender, managing the documentation process and keeping you updated on assessment progress.
Step 5: Approval and settlement coordination
Once approved, we coordinate settlement between your old and new lender, ensuring the transition happens smoothly on the agreed date.
Step 6: Loan activation and ongoing support
Your new loan activates, your old loan discharges, and we remain available for any questions about your new loan features or future refinancing opportunities.
What mistakes do Perth homeowners make when fixed rates end?
The biggest mistake is assuming your current bank will offer you their best available rate automatically. Banks often reserve their most competitive rates for new customers, while existing customers rolling off fixed rates are offered standard variable rates that can be 0.5% to 1.0% higher than what's available elsewhere in the market.
Many homeowners also wait until after their fixed rate has already expired before exploring options. Starting the comparison process 90 days early gives you negotiating power with your current lender and time to secure a better deal elsewhere if they won't match competitive market rates.
Should you fix again or stay variable in 2026?
This depends on your risk tolerance and rate outlook. In the current environment, where the RBA has hiked three times in 2026 and held at 4.35% in June, fixed rates at most lenders carry a small premium above sharp-end variable rates. If you value repayment certainty and want protection against potential further rises, fixing makes sense. If you want flexibility to make extra repayments or benefit quickly from any future rate movements, variable could be the better choice.
Key factors to weigh up:
- › Variable rate advantages: typically competitive in the current market, unlimited extra repayments, full offset account access, and the ability to benefit immediately if rates fall.
- › Fixed rate advantages: repayment certainty for budgeting, protection against further rate rises, and peace of mind for borrowers who prefer predictable costs.
- › Split loan option: many lenders allow you to split your loan between fixed and variable portions, giving you partial protection while retaining some flexibility.
- › Rate negotiation: your choice between fixed and variable can be a negotiating tool. Some lenders offer better terms on one product type to win your business.
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Local experts
Free service
Prefer to talk now? Call 08 9367 4222 |
Frequently Asked Questions
Can I refinance before my fixed rate actually ends?
Yes, you can refinance any time, though there may be break costs if you exit a fixed rate early. Most lenders waive break costs if you're within 6 months of your fixed rate expiry, making this the ideal window to start comparing options.
Will refinancing affect my credit score?
A single refinancing enquiry has minimal impact on your credit score. Multiple applications within a short period can have a larger effect, which is why working with a broker who can assess your suitability before applying is often the better approach.
How much can Perth homeowners save by refinancing when their fixed rate ends?
The savings depend on the difference between your rollover rate and the best available rate for your situation. A 0.5% rate reduction on a $600,000 loan saves approximately $3,000 per year in interest, often enough to justify switching even after fees.
Do I need to provide income documentation again when refinancing?
Yes. Lenders treat refinancing as a new application, requiring current payslips, tax returns, and bank statements. However, if your income and expenses have remained stable, approval is typically straightforward for borrowers with good repayment history.
Can Perth homeowners access equity when refinancing as their fixed rate ends?
Yes. If your property has increased in value since you bought, you may be able to access additional funds for renovations, investment, or debt consolidation while refinancing. This depends on your income and the lender's loan-to-value requirements.
Should Perth homeowners use a mortgage broker or approach lenders directly when refinancing?
A mortgage broker, every time. Brokers compare rates and features across multiple lenders simultaneously, often accessing wholesale rates not available to direct customers. When your fixed rate is ending and you're facing automatic rollover to a potentially uncompetitive rate, broker comparison is essential.
How long does the refinancing process take in Perth?
Most refinancing applications are approved within 2 to 3 weeks and settle within 30 to 45 days from application. Starting the process 90 days before your fixed rate expires gives you time to secure the best deal without rushing into your bank's rollover option.
Your Next Steps
Your refinancing decision deserves more than accepting whatever rollover rate your bank offers. The difference between lenders can save you thousands per year, which is exactly what a broker comparison is designed to find for you.
The right lender for refinancing depends on your situation, and that's a conversation worth having. Talk to the Launch Finance team or call 08 9367 4222, and we'll compare your options across a wide panel of lenders at no cost to you.
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External Resources
Launch Finance · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
