What is a revert rate?

How does a revert rate work?

A revert rate is an interest rate that fixed and introductory rate home loans reset to at the end of a predetermined term.

Generally, lenders will revert customers to the variable rate they have on offer for all customers. But there have been cases where lenders will use a much higher revert rate.

Even if your revert rate is the standard variable rate on offer you should always compare it against the rest of the market to see how its rate stacks up.

What sort of home loans carry a revert rate?

There are generally two different types of home loan products that revert rates apply to:

Fixed rate loans

A fixed rate home loan means your interest rate won't change for a set period of time, generally between 1 and 5 years. This can work to the bank's advantage if interest rates fall during the fixed rate period, but works to your advantage if rates rise. At the end of your fixed term, you will switch to the variable revert rate.

If rates have risen while you've been on a fixed rate, your new rate is likely to be higher than you were paying.

Introductory rate loans

An introductory rate home loan, is a variable rate home loan that offers a rate discount for a period of time, usually between 1 and 3 years. At the end of this period, your loan could reset to the bank’s standard variable rate or to a higher revert rate.

How much higher is the revert rate from the rate I’m paying now?

The difference between the rate you’re paying and the revert rate can be significant. But it really depends on the lender, the market and the type of loan you have.

Generally, lenders will revert customers to the variable rate they have on offer. This may be much higher if you've been fixed at a lower rate for some time.

Whether your revert rate is higher, the same, or even lower, you should always check it with the basic variable rate your lender is offering to new customers and also compare it with the rest of the market.

What can I do about a high rate?

If you're about to switch to a revert rate and it's a higher rate than you've been paying, you have a couple of options.

1. Negotiate with your lender

The best thing you can do to protect yourself from a high revert rate is to negotiate with your lender as the end of your fixed rate or introductory rate period approaches. You may be offered the opportunity to fix your rate for another term or be able to settle on a discounted rate.

2. Refinance to another lender

If your lender isn’t willing to negotiate, it’s time to look at refinancing. There is a plethora of great home loan deals on the market, so it’s important to compare loans as the end of your fixed or introductory period approaches.

Keep in mind, that moving to a new home loan will come with some costs. You can use our mortgage repayment calculator to crunch the numbers and make sure you’ll come out ahead if you refinance.

If you’ve checked the figures and decided to refinance, you can compare loans in the table near the top of this page. Or, if you want to learn more about the refinancing process, you can read our comprehensive refinancing guide.

Our expert says: Compare your rate, check your loan terms

"If you know you're coming up to the end of your fixed or offer period and you haven't received communication about your revert rate, get in touch with your lender.

The sooner you know what your revert rate is, the sooner you can take action. You don't want to wait until you've started paying a higher rate to shop around.

Once you've got your revert rate you can start comparing to make sure you're moving to the best deal. If you're not, think about refinancing. You need to check your loan terms first though, to confirm whether or not you need to pay any exit fees and to make sure these fees don't negate any savings from a lower rate."

Rebecca Pike

Senior Money Writer

Frequently asked questions about home loan revert rates

• Are home loan revert rates always higher?

  Not always, no. It depends on the market you're in at the time of switching and what rate you were on before. For example, if you fixed your home loan at a rate of 5.00% but by the time your fixed rate term ended rates had fallen further, you might find the variable rate offered by your lender is lower.

  Typically though, borrowers fix at a lower rate. This means your revert rate will be higher. It is usually the same variable rate that your lender offers in the market and so should be competitive, but you will need to check.

  With an introductory offer, your revert rate will be higher. Again, it is usually the same variable rate that your lender offers in the market. You should shop around to see how it compares to the rest of the market.

• What is the lowest interest rate at the moment?

  According to Finder's database, the lowest interest rate in April 2025 is 5.44%.

  But bear in mind that the lowest rate often has conditions and may not be suitable for every borrower. For more low rates, check out Finder's cheapest home loans page.

Written by

Rebecca Pike

Senior Money Writer

Rebecca Pike is Finder’s senior money writer, with over 10 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise, A Current Affair, 9News, and Sky News, and contributes expert analysis to publications like Yahoo Finance and The Latch. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise

Rebecca has written 219 Finder guides across topics including:

• Home loans
• Cost of living
• Budgeting