With fixed home loan rates at record lows, if you’re not on the refinancing ball right now, you could miss out on some serious savings.
Of course, whenever you’re thinking about consolidating a loan or switching to another lender, there are always a few things to take into consideration. This includes break fees, how refinancing might affect your credit score, lenders mortgage insurance and when it comes to fixed interest home loans, revert rates.
What is a revert rate?
Quite simply, a home loan revert rate is the interest rate that your home loan will revert to when the fixed interest rate period is up. The new revert rate will be a variable rate, meaning your repayments could increase or decrease, depending on market changes and your lender.
Revert rates can range anywhere from a few basis points lower than the fixed rate to more than double it, which is why it’s important to know what this rate is before you sign up to the fixed rate loan.
Top tips for refinancing
Borrowers with equity below 20%. If you have less than 20% equity in your home, refinancing may not be a good option as it will mean that you will need to pay Lenders Mortgage Insurance again and the cost for this might outweigh any savings you’d make from refinancing.
Borrowers with equity above 20%. You won’t have to worry about paying lenders mortgage insurance and this gives you more leeway to take advantage of low fixed interest rates for a few years. Be sure that you take note of the revert rate upfront and if this is on the high side, be fully prepared to refinance again when the fixed rate period ends.
Compare refinance home loans - last updated November 21, 2020
Smart Booster Home Loan
Celebrate Variable Home Loan
- Virgin MoneyVirgin Money
Special Offer Reward Me Fixed Rate Home Loan
UHomeLoan - Discount Offer
Fixed home loans with competitive revert rates
Here are a few examples of fixed interest rate home loans with competitive variable revert rates. Just keep in mind that, as these are variable rates, they are subject to change and may not be the same in a few years when the fixed interest rate period is up.
- HSBC Fixed Rate Home Loan - 3.16% p.a. revert rate
- Tic:Toc Fixed Home Loan - 2.54% p.a. revert rate
- Homestar Star Essentials Fixed Home Loan - 2.39% p.a. revert rate
Head to our refinance home loans page for more options, or check out the deals on offer below.
^See information about the Mozo Experts Choice Home Loans Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.