When should I start the refix process in New Zealand?

Start at least 3-4 weeks before your fixed term expires. Many NZ banks allow you to lock in a new rate up to 60 days before expiry. If you do not act, your mortgage automatically rolls to the floating rate at expiry, which is typically 1.0-1.5% higher than fixed rates.

Is it better to fix long or short in New Zealand in 2026?

This depends on the RBNZ OCR trajectory. When the RBNZ is in an easing cycle, shorter fixed terms allow you to capture falling rates. When rates are rising, locking long protects against future increases. In 2025 with the RBNZ having cut from 5.5%, medium-term fixes of 2-3 years are common as borrowers balance certainty with flexibility.

Can I split my NZ mortgage across different fixed terms?

Yes. Most NZ banks allow split mortgages with different fixed terms on each tranche. For example, 60% fixed for 2 years and 40% fixed for 5 years. This hedges against rate uncertainty. Minimum tranche sizes vary by bank, typically $50,000-$100,000 per tranche.

What happens if I do not refix at the end of my NZ fixed term?

Your mortgage automatically rolls to the bank's standard floating rate, which is typically 1.0-1.5% higher than fixed rates. Banks send notifications 30-60 days before expiry. Always respond to these notices to avoid accidentally paying the higher floating rate.

Do NZ banks offer cashback for refixing?

Some banks offer $1,000-$3,000 cashback for refixing, particularly when switching banks. However, a bank charging 0.20% more than competitors while offering $2,000 cashback may still cost more in total. On a $450,000 loan, 0.20% extra over 2 years equals $1,800 in additional interest, nearly eliminating the cashback benefit.

NZ Mortgage Refix Calculator

Compare all New Zealand mortgage refix options for 1, 2, 3 and 5-year fixed terms. See monthly payment changes, total savings, refix vs floating analysis, split mortgage strategy, and how to negotiate a better rate at refix time. NZD.

Current Mortgage Balance

Current Fixed Rate (Expiring)

Remaining Loan Term

Current Market Refix Rates (adjust to your bank's offers)

1-Year Fixed Rate

2-Year Fixed Rate

3-Year Fixed Rate

5-Year Fixed Rate

Floating Rate

Best Refix Option

5.35% — 5-Year Fixed

Monthly payment: NZ$2,723 · Saving vs current rate: NZ$483/mo

Current Monthly Payment

NZ$3,206

Best New Monthly

NZ$2,723

Monthly Saving

NZ$483

Annual Saving

NZ$5,798

Advanced

Advanced Calculator

All refix term options compared, refix vs floating analysis, negotiation calculator

Compare monthly payments and total interest costs for all available refix terms on your NZ$450,000 balance.

Option	Rate	Monthly Payment	vs Current	Saving over Term
Current Rate (expiring)	7.09%	NZ$3,206	—	—
1-Year Fixed	5.99%	NZ$2,897	-NZ$310/mo	NZ$3,717
2-Year Fixed	5.69%	NZ$2,815	-NZ$392/mo	NZ$9,401
3-Year Fixed	5.49%	NZ$2,761	-NZ$446/mo	NZ$16,045
5-Year FixedLOWEST RATE	5.35%	NZ$2,723	-NZ$483/mo	NZ$28,990
Floating	7.20%	NZ$3,238	+NZ$32/mo	-NZ$381/yr

Refix tip: Refixing is one of the most financially significant decisions you can make. A 0.50% rate difference on NZ$450,000 saves approximately NZ$188/month or NZ$2,250/year. Start the refix conversation with your bank 3–4 weeks before your fixed term expires.

Pro

Professional Simulator

Rate outlook strategy, split refix calculator, cashback true value

The optimal refix strategy depends on your view of where interest rates are heading. Use this framework to guide your decision.

Rates Rising (RBNZ tightening)

Strategy: Lock long — fix 3 or 5 years

Locking in now protects against future rate increases. The longer you lock, the more certainty you have, at the cost of flexibility.

Suggested: 5-Year Fixed at 5.35% = NZ$2,723/mo

Rates Falling (RBNZ easing)

Strategy: Fix short or float — 1 year or floating

Fixing long when rates are falling locks you into above-market rates. A shorter fix means you can benefit from lower rates sooner. Floating gives maximum flexibility but highest current rate.

Suggested: 1-Year Fixed at 5.99% = NZ$2,897/mo

Rates Stable (flat RBNZ)

Strategy: Best value term — typically 2–3 years

When rates are expected to stay relatively flat, the middle terms often offer the best combination of rate and certainty. 2-year fixes typically offer a good balance.

Suggested: 2-Year Fixed at 5.69% = NZ$2,815/mo

Uncertain / Mixed Signals

Strategy: Split fix — diversify across terms

When the outlook is unclear, splitting the mortgage across 2 or 3 different fixed terms reduces the risk of getting the timing wrong. Part of the loan refixes sooner if rates fall; part is protected if rates rise.

RBNZ watch: The Reserve Bank of New Zealand's Official Cash Rate (OCR) decisions directly drive short-term NZ mortgage rates. Monitor RBNZ Monetary Policy Statements (February, April, May, July, August, October, November) for rate guidance. Fixed rates are also influenced by wholesale swap markets which can move independently of the OCR.

What Is a Mortgage Refix in New Zealand?

A mortgage refix is the process of choosing a new fixed interest rate term at the end of your current fixed period. In New Zealand, most mortgages are fixed for 1, 2, 3, or 5 years at a time — unlike the United States where 30-year fixed rates are standard. When your fixed term expires, you must decide whether to fix again (and for how long), or revert to the floating (variable) rate.

Refixing is one of the most financially significant decisions a New Zealand homeowner makes. On a $450,000 mortgage, a 0.50% difference in refix rate equates to approximately $187/month or $2,244/year. Over a 2-year fixed term, that is over $4,488 in interest savings or costs.

The refix decision involves several considerations: the outlook for the Official Cash Rate (OCR) set by the Reserve Bank of New Zealand (RBNZ), the shape of the yield curve (relationship between short-term and long-term rates), your personal circumstances (job security, potential to sell), and whether to split the mortgage across multiple terms for rate diversification.

How to Use This Calculator

Enter your Current Mortgage Balance — the amount still owing when your fixed term expires.
Enter your Current Fixed Rate (expiring) so the calculator can show you the change in payment.
Set your Remaining Loan Term (total years left on the mortgage, not the fixed period length).
Adjust the Market Refix Rates to match the rates your bank or broker is currently quoting for each fixed term.
The Quick calculator instantly shows which option gives the lowest payment and monthly saving vs your current rate.
Use the Advanced tier to compare all options in detail and calculate the value of negotiating a lower rate.
Use the Pro tier to model split refix strategies and evaluate cashback offers.

Refix Decision Formula

Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]

Where P = balance, r = monthly rate (annual ÷ 12), n = remaining term months.

Balance	$450,000
Remaining Term	25 years (300 months)
Expiring Rate	7.09% p.a.
Current Monthly Payment	$3,184
1-Year Refix at 5.99%	$2,899/mo (save $285/mo)
2-Year Refix at 5.69%	$2,831/mo (save $353/mo)
3-Year Refix at 5.49%	$2,784/mo (save $400/mo)
5-Year Refix at 5.35%	$2,753/mo (save $431/mo)

The lowest rate over the full remaining term gives the lowest total interest, but you must weigh this against the flexibility cost of a longer fixed period.

Worked Example

Sarah refixing a $500,000 mortgage in Wellington with 22 years remaining

Current expiring rate	6.89% (fixed 1 year)
Current monthly payment	$3,688
Best refix offer: 2-year at 5.69%	$3,169/mo
Monthly saving	$519/mo
2-year saving	$12,456
Negotiated rate (broker, 0.15% off)	5.54% = $3,097/mo
Extra monthly saving from negotiation	$72/mo
2-year value of negotiation	$1,728

Sarah's broker got her 0.15% below the advertised 2-year rate, adding $1,728 over the 2-year term on top of the base saving from moving to a lower rate. The total saving from refixing vs staying at 6.89% is $14,184 over 2 years.

Frequently Asked Questions

Start at least 3–4 weeks before your fixed term expires. Many NZ banks allow you to lock in a new rate up to 60 days before expiry, giving you flexibility if rates move during that period. At expiry, if you have not chosen a new term, most banks will automatically roll you to the floating rate, which is typically the highest rate available. Do not let this happen accidentally.

This depends on the OCR trajectory set by the RBNZ. When the RBNZ is in an easing cycle (cutting the OCR), shorter fixed terms or floating rates allow you to capture falling rates sooner. When the OCR is rising, locking long protects against future increases. In 2025, with the RBNZ having cut the OCR from 5.5% to lower levels, many economists expect rates to stabilise or move gradually, making medium-term fixes (2–3 years) a common choice for balancing certainty and flexibility.

Yes. Most NZ banks allow you to split your mortgage into two or more tranches with different fixed terms. This is commonly called a "split mortgage" or "split fix." For example, 60% fixed for 2 years + 40% fixed for 5 years. This strategy hedges against rate movements — if rates fall, the shorter tranche benefits sooner; if rates rise, the longer tranche is protected. The minimum split amount varies by bank, typically $50,000–$100,000 per tranche.

If you do not instruct your bank on a new fixed rate, your mortgage will typically automatically roll to the bank's standard floating rate at the end of your fixed term. In New Zealand, floating rates are usually 1.0–1.5% higher than fixed rates, so accidentally rolling to floating can cost significantly more per month. Banks send notification letters 30–60 days before expiry — monitor these carefully and respond promptly.

Some NZ banks offer cashback incentives of $1,000–$3,000 for refixing, particularly when you switch banks. However, cashback offers must be evaluated carefully — a bank offering $2,000 cashback but charging 0.20% more than competitors may cost you more in total. On a $450,000 loan, 0.20% extra over 2 years = $1,800 in extra interest, nearly wiping out a $2,000 cashback. Always calculate the net position, not just the headline cashback amount.