Refix
Refixing your mortgage in NZ: timing, term selection, rate strategy, and how to avoid costly mistakes when your fixed term ends.
Articles in this topic
The Official Cash Rate (OCR) Explained: What Every NZ Homeowner Needs to Know
The OCR plays a central role in determining how much you'll pay on your mortgage. Here's a plain-English guide to understanding New Zealand's most important interest rate.
Where Will Mortgage Interest Rates Be in 2026?
What might happen to mortgage rates through the rest of 2026? We look at what economists, banks, and the Reserve Bank are saying-with the next OCR decision coming 19 February.
Your Mortgage Rate is 8%
A financial strategy where homeowners should mentally prepare for higher interest rates by adjusting repayments as if their rate were 8%.
Revolving Credit vs Floating Mortgage Account: What's the Difference?
Two flexible mortgage options available to New Zealand homeowners. Both operate on floating interest rates that fluctuate with market conditions.
Renovate Your Home or Pay Down Your Mortgage?
Should NZ homeowners prioritize home renovations or mortgage reduction? Here are the key considerations.
Refinancing for Property Investors: What You Need to Know
Exploring refinancing strategies for property investors beyond simply chasing lower rates.
Should I Pay Down My Mortgage or Contribute to KiwiSaver?
A common New Zealand decision: allocating extra income between mortgage repayment and KiwiSaver contributions.
Mortgage Calculator: How to Find the Best One
How to choose a mortgage calculator that actually helps you plan, plus recommendations for the best NZ-specific tools including sorted.org.nz and interest.co.nz.
Is It Worth Getting a Flatmate to Help Pay My Mortgage?
A spare room represents significant untapped earning potential. Here's how a flatmate could accelerate your mortgage repayment.
Why Should You Use a Mortgage Broker If You Already Have a Mortgage?
When you think about mortgage broking, you probably think about it in the context of buying a house. But your mortgage broker provides multiple important services throughout the life of your mortgage.
NZ Interest Rates Prediction 2020 (Historical Archive)
HISTORICAL: This article from early 2020 was overtaken by COVID-19 events. Preserved for historical interest only.
NZ Mortgage Interest Rates Prediction 2023 (Historical Archive)
HISTORICAL: This 2023 prediction article is now over 3 years old. Preserved for historical interest-see how our predictions played out.
Where Will Mortgage Interest Rates Be In 2024? (Historical Archive)
HISTORICAL: This 2024 prediction article has been overtaken by events. The OCR has since dropped to around 4% with further cuts expected.
What Could NZ Mortgage Rates Be In 2025? (Historical Archive)
HISTORICAL: This 2024 prediction has been superseded. Actual OCR cuts were more aggressive than predicted, dropping to around 2.25% by late 2025.
Should You Break Your Fixed Mortgage? Here's How to Calculate If It's Worth It
Over the past 16 years, mortgage interest rates in New Zealand have had their fair share of ups and downs, creating situations where borrowers experience regret about their fixed rates.
Weekly vs Monthly Mortgage Payments: Which Is Better?
Does paying your mortgage weekly instead of monthly really save you thousands? This article investigates whether this advice holds merit through mathematical analysis.
When is the Right Time to Refinance Your Mortgage?
Refinancing a mortgage can be a strategic financial move. Here are several key indicators to help borrowers determine if refinancing aligns with their situation.
Why Don't We Have 30-Year Fixed Mortgages in New Zealand?
If you've lived in the United States, you'll probably be familiar with 30-year fixed mortgages. But in New Zealand, the longest fixed term you're likely to get is five years. So why the difference?
The Magic of Compound Interest When Paying Down Your Mortgage
Compound interest represents "interest on interest." Understanding this concept can help you save hundreds of thousands throughout your loan.
Fixing or Refixing Your Mortgage: 3 Questions to Ask Before You Lock In
Let's be honest, refixing your mortgage doesn't exactly set your pulse racing. But it represents a financially significant annual decision deserving careful consideration before locking in rates.
Frequently asked questions
What is the difference between refixing and refinancing a mortgage?
Refixing means securing a new rate with your current lender without application fees, while [refinancing](/blog/when-is-the-right-time-to-refinance-your-mortgage) involves switching to a different bank with full applications and potential valuations. Refixing is simpler and faster since no credit assessment is required, whereas refinancing may offer better rates but involves more paperwork and potentially cash contributions from the new lender.
How early can I lock in a new mortgage rate before my current term expires?
Borrowers can typically lock in new rates up to 60 days before their current fixed term expires. Some lenders also offer rate guarantees that automatically apply lower rates if they drop before your new term begins. This gives you time to compare options and secure favourable rates without rushing your decision.
Should I split my mortgage across different fixed terms?
Yes, staggering refix dates across split mortgage accounts spreads risk and prevents payment shocks if all portions roll over during a rate increase simultaneously. For example, you might fix $350,000 at a 2-year rate for stability while keeping $150,000 on a 1-year or floating rate for flexibility. Learn more about [split banking](/blog/what-is-split-banking) strategies.
What happens if I need to sell my home during a fixed mortgage term?
Early exit from a fixed term triggers substantial [break fees](/blog/how-to-calculate-break-costs). If you anticipate selling within 1-2 years, consider shorter fixed terms or floating options for flexibility. Break costs can run into thousands of dollars depending on how much rates have moved since you fixed.
How does the Official Cash Rate affect my mortgage rate decisions?
The [Official Cash Rate (OCR)](/blog/official-cash-rate-ocr-explained) set by the Reserve Bank influences all interest rates in the economy. When the OCR drops, fixed rates typically follow, though not always immediately or proportionally. Understanding OCR movements and market expectations helps inform your term length decision.
What are the advantages of floating vs fixed mortgage rates?
Fixed rates offer repayment certainty, protection against rate increases, and predictable budgeting. Floating rates provide immediate benefit when rates drop, payment flexibility, and no break fee restrictions. Floating rates typically sit 1-1.5% higher than the best fixed rates, so most borrowers benefit from fixing unless they have specific circumstances requiring flexibility.
Can I make extra repayments on a fixed mortgage?
Most lenders permit up to 20% repayment increases during fixed periods without penalties, enabling faster principal reduction through [compound interest savings](/blog/the-magic-of-compound-interest-when-paying-down-your-mortgage). Any lump sum payments should be made before refixing to reduce your loan balance without triggering break fees. Check your specific loan terms for exact limits.
How do I read what the market expects rates to do?
Compare rates across different terms. When short-term rates (6 months) are higher than longer-term rates (1-2 years), markets expect rates to fall. When longer terms offer similar or better rates than short terms, markets expect stability or increases. This relationship helps inform your term length decision alongside your personal circumstances.