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 (or revert) to at the end of the fixed term period or an interest-only period. You can find Tiimely Own home loan current roll-to rates on our rates page.
Variable rates are by definition variable in nature and depend on the cost of funding at the relevant time. Depending on when your fixed period commenced, 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 period notifying you of the roll-to rate and the applicable date.
There are a couple of options you may wish to pursue depending on your roll-to date:
If you're rolling to a variable interest rate that is lower than your current rate
Depending on your situation, you could let it roll to the roll-to rate. Variable rates are variable in nature and likely to move so it’s worth keeping an eye on your rate and shopping around, so you know what's on offer when the time comes to move on.
You're rolling to a higher variable interest rate
You could get a head start on negotiations 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
Fixing again may be your preference if you're someone who likes to know exactly how much to budget for loan repayments, or fixed interest rates are low when you roll off so it makes sense to lock in again. Either way, fixing will help you secure your interest rate and give you certainty around your repayments.
Refinancing
You’ve come to the end of your fixed rate term and there are a couple of features and add-ons you feel could help make life a bit easier. Need an offset account or redraw facility this time around? Or want to consolidate some debt to free up cash flow? Maybe you just want to make sure you’ve got the hottest rate going? Start researching so you can get onto a better deal as soon as possible.
Found in:
- Loan features
- Home loans explained