Your Mortgage Is Refixing: What to Do Next

What happens when your fixed term expires?

When your fixed mortgage term ends, your loan automatically rolls onto your bank's floating (variable) rate — which is almost always higher than fixed rates. Banks will typically send you a letter or email in the weeks before rollover with an offer to refix. Most people take the path of least resistance and accept whatever rate the bank offers.

That's a mistake. This is one of the best opportunities to save meaningful money on your mortgage — but only if you act.

Start looking 60–90 days out

Most banks allow you to lock in a rate up to 60–90 days before your current term expires. This means you can secure a rate today for a term that starts in the future — useful if you think rates might rise, or if you just want certainty early.

Don't wait until the last week before your term expires. Give yourself time to compare options properly.

Your three main options at refix

1. Refix with your current bank

Quickest and simplest — usually just a phone call or online form. No new application required. The downside: you only see one set of rates and you're not leveraging any competitive pressure. You may not get their best offer by asking nicely.

2. Negotiate with your current bank

Banks have more flexibility on rates than their advertised specials suggest. If you come to your bank with a competing offer from another lender, they'll often sharpen their rate or offer a cashback to retain you. Don't be afraid to negotiate — the worst they can say is no.

3. Switch to a new bank

Refixing is the natural switching window — no break fees apply, and you're free to move. A new bank might offer a better rate, a cashback, or both. The switching process takes 2–4 weeks and involves your solicitor, but a mortgage adviser manages most of it for you.

What to compare beyond the interest rate

The rate matters most, but there are other things worth considering when refixing:

• Cashback offers — switching banks can put thousands of dollars in your pocket
• Loan structure — should you split fixed/floating differently? Change your split ratio?
• Fixed term length — where are rates expected to go? Shorter or longer?
• Repayment type — could you be paying down principal faster?
• Revolving credit or offset facilities — some banks offer these; they can reduce your effective interest cost significantly

Should you fix for a shorter or longer term?

This is one of the most common questions at refix time. A few things to consider:

• If rates are expected to fall, shorter terms keep you flexible to refix at lower rates sooner
• If rates are expected to rise, longer terms lock in current rates before they go up
• If you're planning to sell, renovate, or significantly change your situation, shorter terms give you more flexibility

In most market conditions, New Zealanders tend to fix for 1–2 years — enough certainty without locking in for too long. A mortgage adviser can give you a view on the current rate environment.

The refix conversation with your adviser

If you have a mortgage adviser, your refix is a great time to check in. They'll:

• Compare current rates across multiple lenders
• Identify any cashback offers available
• Model the savings from switching vs. staying
• Review your overall loan structure
• Handle any paperwork if you decide to switch

This service is free — advisers are paid by lenders, not by clients.

What if you miss the refix window?

If your loan rolls onto floating, don't panic. You can still refix at any time — just contact your bank or adviser. Floating rates are higher, but there's no fixed commitment or break fee, so you can switch back to fixed whenever it suits you.