Refinancing in the Sutherland Shire: What to Do Before Your Fixed Rate Ends
If you locked in a fixed rate a few years ago, there is a fair chance it is about to expire. You are not alone. Around 38% of Australian mortgages are due to roll off their fixed term in the next twelve months, and when they do, many borrowers find themselves moving onto a standard variable rate that is meaningfully higher than what they have been paying.
For a lot of Shire households, that is a real jump in the monthly repayment - not a rounding error. The good news is you do not have to sit and cop it. Refinancing in the Sutherland Shire is one of the most active parts of the market right now, and a bit of planning before your fixed term ends can make a genuine difference to what you pay from there.
Here is what is worth knowing, and what is worth doing.
Why the end of a fixed term catches people out
A fixed rate does exactly what it says - it holds steady while it is in place. The catch is what happens at the end. When the fixed period finishes, your loan usually reverts automatically to the lender's standard variable rate, which is often one of the higher rates on their book.
So the shift can be sharp. Borrowers rolling off fixed terms at the moment are commonly looking at an increase of somewhere between 1.5 and 2.5 percentage points when they move onto the revert rate, depending on the lender and when they fixed. On a Shire-sized loan, that is the kind of change you feel at the kitchen table.
The part that catches people out is the timing. The revert happens on a set date whether or not you have done anything about it. If you wait until the higher repayment lands in your account to start looking, you have already paid more than you needed to for at least a month or two.
Start the conversation early - around 90 days out
The single most useful thing you can do is start looking before the fixed term ends, not after.
Lenders are pre-approving refinances up to around 90 days before a fixed rate expires, partly because there is so much competition for good borrowers right now. That window matters. It gives you time to compare what is available across the panel, get the paperwork sorted, and have a new loan ready to settle close to the day your fixed rate finishes - rather than spending months on an expensive revert rate while you get organised.
If your fixed term ends in the next three to four months, now is the time to have a look. If it ended recently and you have been sitting on the variable revert rate since, it is still well worth a review.
What a refinance review actually looks at
A loan health check is not just a hunt for a different number. When we sit down and look at the numbers with you, we are weighing up a few things together:
The rate and how it is structured. Variable, a new fixed term, or a split of both. There is no single right answer - it depends on how you think about repayments and certainty.
Your offset and redraw setup. For a lot of borrowers, an offset account does more work than a slightly different headline rate.
Fees and the cost of switching. Some refinances carry exit, discharge or application costs. The savings need to clear those before a switch makes sense, and that is exactly the sort of sum worth doing properly.
Cashback offers. These have come back into the market, with some lenders offering cashback for refinances. They can help, but they are not the whole story, and the ongoing rate matters more than a one-off payment.
Your borrowing position now. Serviceability buffers have tightened as rates have moved. It is worth understanding where you sit before you assume a switch is a given.
This is general information rather than personal advice, and the right structure depends on your own situation. The point of the review is to lay it all out so you can see your options clearly.
The local angle
There is a reason refinancing is busy across Caringbah, Cronulla, Miranda and the wider Shire. Property values here have held up well, which means a lot of households have built equity since they first borrowed. More equity can mean a lower loan-to-value ratio, and a lower LVR can open up sharper pricing and more lenders willing to compete for your loan.
That is the quiet upside of the current market. Even with rates higher than they were, a borrower with solid equity and a clean record is in a strong negotiating position - and lender retention teams know it. Sometimes the conversation that gets you a better outcome is the one your current lender has when they realise you are looking.
With more than 60 lenders on the panel, SMG can compare what is actually available for your situation rather than what one bank happens to be offering this week. You can read more on our refinance options page, and if you are weighing up a move or an upgrade at the same time, our home loans page covers that too.
Don't refinance just to refinance
One honest aside. A lower rate is not automatically a better loan, and switching is not always the right call. If the costs of moving outweigh the saving, or your current setup genuinely suits where you are, then staying put can be the smart play.
We will tell you straight. The aim is the right loan for where you are now, not a switch for the sake of it.
The takeaway
If your fixed rate is ending in the next few months, or has recently ended and you have rolled onto a higher variable rate, it is worth a look. Start the conversation early, get your options on the table, and make the decision with the numbers in front of you.
A loan health check is about half an hour of our time and can be a year-on-year difference for you. If you would like to run through it, call or text Stu on 0401 641 773. He is the one you will work with, from the first chat to settlement.
Frequently asked questions
When should I start looking at refinancing before my fixed rate ends? Around 90 days out is a good time. Many lenders will pre-approve a refinance up to three months before a fixed term expires, which gives you time to compare options and have a new loan ready to settle close to the day your fixed rate finishes.
How much more will I pay when my fixed rate reverts to variable? It depends on your lender and when you fixed, but borrowers rolling off fixed terms recently have commonly faced an increase of around 1.5 to 2.5 percentage points when moving onto the standard variable revert rate. A review before the revert date can help you understand your options.
Is it worth refinancing if I have built up equity in my Shire property? Often, yes. Strong property values across the Sutherland Shire mean many households have built equity, which can lower your loan-to-value ratio. A lower LVR can open up more competitive pricing and more lenders willing to compete for your loan. It is worth a look at the numbers.
Are there costs involved in refinancing? There can be. Some loans carry discharge, application or other switching costs, and these need to be weighed against the saving. A loan health check works through whether a switch stacks up for your situation.
Does refinancing always save money? Not always. A lower headline rate is only part of the picture - structure, fees, offset setup and your own circumstances all matter. Sometimes staying put is the better call. The point of a review is to see it all clearly before you decide.
Who would I deal with at Sutherland Mortgage Group? You deal with Stu. The person you first meet with is the person who runs your loan, from application to settlement. You can call or text him on 0401 641 773.
The information provided is general in nature and for illustrative and discussion purposes only. Sutherland Mortgage Group is a credit broker, not a financial adviser. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
