Home loan revert rates: The fine print to pay attention to when remortgaging

By Tara McCabe ·

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 February 27, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

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  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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  • Mozo Experts Choice 2020
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.75% p.a.
    fixed 3 years
    2.22% p.a.

    $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

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  • Mozo Experts Choice 2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

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  • Special Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    fixed 4 years
    3.45% p.a.

    Ability to split your loan between fixed and variable. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply

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  • Extra features. It is also good to remember that there is more to consider when refinancing. For instance, while a fixed interest rate home loan might come with a low revert rate, it might not come with all the features you’re after, such as the ability to make extra payments or an offset account.

    • 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.

    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.

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