Perth’s fast-moving property market: what happens when your fixed rate ends?
- Andy Vann
- Feb 24
- 4 min read
Five years ago, during COVID, many Perth homeowners locked in historically low fixed rates, and at the time it made complete sense. Rates were under 2 percent in many cases, certainty felt valuable, and nobody knew how long the uncertainty would last.
Fast forward to now.
Those fixed terms are ending, and for many households the repayment change will feel significant.
This isn’t about panic. It’s about preparation.
Why so many people fixed in 2021–2022
During the pandemic:
• cash rates were at emergency levels
• lenders were offering fixed rates below 2 percent
• economic outlook was unclear
• certainty was attractive
Thousands of borrowers locked in for two, three, or even up to five years, those decisions were rational. The challenge now is that when those fixed periods end, the loan reverts to a variable rate that reflects today’s environment.
And today’s environment looks very different.
What the repayment jump can look like
Let’s use a simple example.
Assume:
• Loan amount: $500,000
• Fixed rate: 1.95%
• 30-year term
• Three months left before expiry
• Revert rate: 5.80%
At 1.95 percent, repayments on a $500,000 loan over 30 years are roughly $1,830 per month
At fixed term expiry, that rate reverts to 5.80 percent, repayments move to approximately $2,930 per month
That’s an increase of around $1,100 per month
This is illustrative only, your own numbers will vary based on balance, term remaining, and lender, but the point is clear, and the jump can feel material.
Where people get caught out
The most common mistake is waiting until the fixed rate has already expired.
By that point:
• the higher repayment has already started
• cashflow stress may already be felt
• urgency replaces clarity
There is usually a window 3 to 6 months before expiry where options can be explored calmly, which is the smarter time to act.
If your fixed rate ends this year and you’re unsure what the numbers will look like, this is usually the point where a short, structured conversation can prevent unnecessary stress later, you don’t need to commit to refinancing, you just need to understand your position before the rollover happens.
What your options actually are
When a fixed rate is ending, there are typically four pathways:
Do nothing. Allow the loan to revert and reassess later.
Request a rate review. Sometimes your current lender will offer a sharper variable rate without refinancing.
Refinance. If your rate is not competitive, or your structure needs adjusting.
Restructure. This might include splitting loans, extending term to manage cash flow, or repositioning debt strategically.
Not every borrower should refinance, and not every borrower should stay.
The key is understanding the numbers before the rollover happens.
I’ve recently broken down when refinancing actually makes sense, and when a simple rate review is enough.
Why this matters in Perth right now
Perth’s property market has strengthened in recent years. That means some homeowners who fixed at very low rates are now also sitting on increased equity, that combination creates opportunity as well as pressure.
For some, it means reviewing structure, for others it opens up conversations around refinancing, restructuring, or even investing down the track.
For some homeowners, reviewing a fixed-rate expiry also opens broader conversations around investing or longer-term planning.
Reducing the collateral damage
The phrase “repayment shock” gets used a lot, but shock is usually about timing, not just numbers.
If you wait until the fixed rate ends the higher repayment can feel abrupt and overwhelming, a calmer approach is to model the new repayment now and start preparing early.
Using the earlier example, if your repayment is likely to move from around $1,830 per month to roughly $2,930 per month, that’s an increase of about $1,100, rather than waiting for that jump to hit all at once, you could start adjusting now.
For example:
• calculate what the new repayment would be
• begin transferring the difference into savings each month
• test how your budget feels at the higher level
If you can comfortably manage it, you’re building a buffer at the same time, but If you can’t manage it yet, there’s no penalty. That insight is valuable. It simply tells you that adjustments may be needed before the rollover date. Those adjustments may have to come in the form of scrapping a couple of those subscriptions, or even refinancing your car loan to reduce repayments (yep, no one thinks of that, but it's an option)
This approach does two things:
• Removes surprise
• Turns anxiety into data
Preparation reduces impact far more effectively than reaction.
A calmer approach
If your fixed rate ends this year, here’s a sensible next step:
• confirm your exact expiry date
• ask your lender what the revert rate will be
• model what repayments look like at that rate
• confirm whether a rate review is possible
• explore refinancing only if it genuinely improves your position
You don’t have to refinance.
You don’t have to switch lenders.
But you should understand your options before the change hits.
If you fixed in 2021 or 2022 and haven’t reviewed your loan yet, now is a good time to have a chat with your home loan guy and see what makes sense from where you’re standing.
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