What is a roll-to rate?

A roll-to rate, also known as a revert rate, is a variable interest rate that fixed rates roll to at the end of the fixed term or an interest-only period. You can find Tiimely Own home loan current roll-to rates here.

Variable rates are changeable and depend on the cost of funding at the particular time and depending on when your fixed period started, you may have a low or high roll-to rate.

What happens at the end of my fixed term period?

Depending on your lender, you may receive a reminder closer to the end of your fixed term notifying you of the roll-to rate and the applicable date.

Depending on your roll-to date, there are a couple of options you may consider:

If you're rolling to a variable interest rate that is lower than your current rate

Depending on your situation, you could let your interest rate roll to the roll-to rate. Variable rates are variable in nature and likely to move so it’s worth understanding your rate and knowing what's on offer when the time comes to move on.

You're rolling to a higher variable interest rate

It’s possible to negotiate with your current lender or start shopping around for a home loan to suit your needs, otherwise known as refinancing. There are pros and cons so make sure your new home loan meets your requirements.

Fix again

There is also the option to fix your rate again if you like to know exactly how much to budget for loan repayments, or if the fixed interest rates are low when you roll off.

Refinancing

At the end of your fixed rate term, there may be a couple of features and add-ons you’d like to have, like an offset account or redraw facility. Or perhaps you want to consolidate some debt to free up cash flow.
It pays to start researching so you can secure a better deal as soon as possible.