So, your home loan’s fixed rate is about to roll off in a few weeks. You’ve probably started getting emails, letters, maybe even a call from your bank reminding you it’s time to “refix.” But when exactly is the right time to do that?

Let’s break it down.

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First, what does “refixing” even mean?

If you’re new to this, refixing is simply choosing a new fixed interest rate for your home loan once your current fixed term ends. The bank will offer you a menu of rates based on your situation and what’s happening in the market.

Most banks let you lock in a new rate up to 8 weeks before your current one ends (some only allow 6 weeks). Sounds convenient, right? But is it the best move?

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The bank wants you to refix early. Should you?

Here’s the thing: banks make it super easy to refix early. Click a button, choose a rate, done. But remember — it’s in their interest to lock you in again quickly. They’re not offering advice, they’re securing your business. That’s not necessarily a bad thing, but it’s worth asking: is it in your best interest too?

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Banks make it super easy to refix early. Click a button, choose a rate, done. But remember — it’s in their interest to lock you in again quickly. They’re not offering advice, they’re securing your business.

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What happens if you do nothing?

If you ignore all the reminders (from your bank and maybe even your mortgage adviser), your loan will roll onto a floating rate. Right now, that’s sitting around 6.5% — not ideal for most people, but it might even be the same as what you are paying now. It’ll stay there until you make a move, whether that’s tomorrow or 30 years from now. (If it is a floating rate, that can move at any time of course)

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So, when should you refix?

Here’s where timing matters.

If we’re in a rate-decreasing cycle, it might be worth holding off. You can refix right up until the day before your current rate expires. But — and this is important — get advice well before that. If you’re thinking about restructuring your loan or switching banks, that takes time. You can’t leave that to the last minute.  I would say give yourself 3-4 weeks to make that happen.

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Are we in a period of rate decreases?

I would argue we still are, but we are nearing an end.  The next moves will very much depend on the strength of the NZ economy (along with inflation forecasts both here and abroad) Is the bottom a few months or a year away?  That is literally a million-dollar question.

Let’s say today is August 26th, and your fixed rate ends on September 26th. If you’re not planning to restructure or refinance, and you’re comfortable with a bit of risk, it might make sense to wait. Why?

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Reserve Bank Cuts

The Reserve Bank cut the OCR (Official Cash Rate) to 3.00% as of August 20th, in response to subdued economic activity and easing inflation pressures. Banks had already begun adjusting their short-term fixed rates in anticipation — and may continue to do so. If you’ve held off fixing your rate, you might be in a stronger position now. If rates don’t shift much further, you’re no worse off. The only real risk would have been an unexpected rate hike — but with the current economic outlook, that’s looking increasingly unlikely.

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What if you’re risk-averse?

If a rate increase would seriously impact your finances, then locking in early might give you peace of mind. There’s no one-size-fits-all answer here — it depends on your comfort with uncertainty and your financial situation.

If you’re unsure, talk to someone who can give you advice tailored to your situation — not just a reminder email.

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Final thoughts

Timing your mortgage refix isn’t just about clicking a button when the bank tells you to. It’s about understanding the market, your options, and your own financial goals. If you’re unsure, talk to someone who can give you advice tailored to your situation — not just a reminder email.

On another note, this will be one of my last Fixed Vs. Floating Blogs until February/March 2026, as I am shortly embarking off on the Te Araroa Trail, a solo adventure I have been planning for about a decade. You can read more about that here.

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‍Brendon Ojala (FSP119244) is a Financial Adviser with Velocity Financial (FSP95466). No investment decision should be taken based on the information in this blog alone. Please see our disclosure statement on our website.

About Brendon:

Hi, I'm Brendon, one of the owners and advisers at Velocity Financial. I have been giving advice on mortgages and insurances at Velocity for around 15 years, and it is great to be able to work with people to achieve their financial goals. Prior to giving money advice, I worked as a youth worker and managed teams for a not-for-profit organisation. I live with my wife and one of my sons (the other one only stays when he needs food) in Berhampore, and if I'm not talking revolving credit accounts, I can be found running the trails of Wellington.

Always get professional advice

The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation.  As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures:

 https://www.velocityfinancial.co.nz/disclosure-statement.

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