When their fixed rate terms expire

It has been very well reported that many mortgage holders will soon be paying much higher interest rates when their fixed rate terms expire.

It is estimated that $478 billion worth of fixed-rate mortgages is due to expire in 2023.

In addition, borrowers may also have to navigate the end of an interest-only term, which typically applies to investment loans.

This blog sets out our advice on how to navigate these changes.

What are your options?


If your fixed rate is maturing, you have two options.

You can re-fix your interest rate for another term or allow the interest rate to roll over onto a variable rate.

Current fixed rates range between 5.39% and 6.10% p.a. for owner-occupiers and 5.69% to 6.70% p.a. for investors (terms between 2 and 5 years).

Variable interest rates range between 4.75% to 4.90% p.a. for owner-occupiers and 5.30% to 5.50% p.a. for investors on interest-only repayments.

As such, fixed rates don’t look attractive for a couple of reasons.

Firstly, it is very likely that we are at or close to the top of the interest rate cycle.

So, there’s limited value in paying a premium (i.e., a higher interest rate) to protect yourself against potentially higher interest rates in the future.

RealRenta has all the tools that a property manager has but for less than ¼ the cost of a property manager.

Join now and the cost is less than a cup of coffee a week to manage your rental property.

RealRenta also has a free vision, so why not check it out

Jason Gwerder
Tuesday, 28 March 2023

Join our mailing list Receive Free Property Tips and news

Now Partnered With


Contact Us

1300 11 RENT (7368)