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NZ mortgage refix calculator
Your fixed term is rolling over. See what your repayment becomes on the new rate, and what it costs if you try to keep paying what you pay now.
The years left on the whole loan, not the length of the fix. Your bank re-spreads the balance over the time that's left.
Enter the balance left on your loan to see what your repayment becomes when your fixed term rolls over.
What actually happens when your fixed term ends
Most New Zealand mortgages are fixed for a short term, often one or two years, on a loan that runs for twenty-five or thirty. When the fix expires the rate you locked in disappears and your bank re-prices the loan: it takes the balance you still owe and re-spreads it over the years you have left, at whatever rate you agree to next.
That last part is the bit people miss. The new rate does not apply for the length of the new fix, it sets the repayment on the entire remaining term. So a loan with 25 years to run re-prices 25 years of payments, even if you are only fixing for one. Early in a loan the balance is still close to what you borrowed, which is why a 1% move can be worth a few hundred dollars a fortnight.
If your rate has gone down, you have a choice worth taking seriously: keep paying the old, higher amount. The difference goes straight onto the principal, and it can pull years off the loan. If your rate has gone up, the new minimum is simply the new minimum, and the useful question becomes how to find that money in the budget before the first payment lands. Either way, knowing the number a few months out is what turns a shock into a plan.
Refixing questions, answered
- What is refixing a mortgage?
- When a fixed term ends (commonly 6 months to 5 years in New Zealand) the rate you locked in expires. You choose a new fixed rate for a new term, move onto floating, or split across both. That is refixing, and because rates move, your repayment usually changes at the same time.
- Why does my repayment jump so much at rollover?
- Your bank re-spreads the remaining balance over the years you have left, at the new rate. Because the balance is still large early in a loan, even a 1% move is worth hundreds of dollars a month. Most people fixed on a low rate feel the whole gap at once instead of gradually.
- Does the bank re-price my loan over the fixed term or the whole loan?
- Over what is left of the whole loan, not the length of the fix. A 2 year fix on a 30 year loan with 25 years to run re-prices 25 years of payments. That is why this calculator asks for the years left on the loan rather than the term you are fixing for.
- Can I keep paying my current repayment after refixing?
- If the rate went down, yes, and it is usually the smartest thing you can do: the extra goes straight onto the principal and clears the loan years earlier. If the rate went up, your current amount is normally below the new minimum, so the bank will lift it. This calculator shows both cases.
- How far ahead should I plan for a refix?
- Start budgeting for the new repayment a few months out. Banks usually let you lock a rate around 30 to 60 days before rollover, so knowing your number early means you can compare offers instead of accepting the first one.
- Should I fix for a short or a long term?
- A short term lets you re-price sooner if rates fall, a longer one buys certainty if they rise. Nobody reliably picks the bottom, so many Kiwis split the loan across two terms so only part of it refixes at any one time. Which suits you depends on your budget headroom, not on a forecast.
- Can I negotiate the rate my bank offers at rollover?
- Usually yes. Carded rates are a starting point, and banks will often better them to keep your business, especially with 20% equity or more. Get a competing quote before you accept, and check any cash contribution clawback if you are thinking of moving lenders.
Find the extra before the refix does.
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