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If you already own your home and your fixed mortgage rate is coming up for renewal, it’s tempting to simply accept the bank’s offer and move on, especially when it is as easy as pressing a button on your banking app! But refixing is a chance to reassess your financial strategy — and asking the right questions of your adviser can help you make a decision that supports your long-term goals.
As of August 2025, interest rates are still in a downward cycle — but that could change soon. Whether rates continue to fall or begin to rise again, timing your refix can make a real difference. Ask us whether it’s worth waiting a few weeks or months before you refix. Just keep in mind that the refix process can take time, and you may end up on a floating rate in the interim — which could be higher or lower depending on market movements.
Example: You’re about to roll off a 2-year fixed rate of 6.39% that expires in October. Your adviser tells you that some banks are offering 1-year rates at 4.75%, and economists expect rates to drop further by December. Waiting a few weeks could mean locking in a lower rate — but only if you're comfortable with the risk.
Your financial goals and priorities may have changed since your last fix. Are you planning renovations, travel or retirement in the next year or two, and need some more flexibility? Perhaps you have had some unplanned things happen that mean you need more predictability in your repayments? Life is always changing, and your adviser can help match your loan term and structure to your evolving needs.
Splitting your mortgage across different terms or fixed/floating rates can offer flexibility and reduce risk. This is especially useful if you're managing other financial commitments. Your adviser can give you the options based on your priorities and risk appetite.
Example: Splitting your mortgage can give you short-term flexibility while protecting part of your loan from future rate increases. You split your $600,000 mortgage into two parts: $300,000 fixed for 1 year at 4.75%. $300,000 fixed for 2 years at 4.89%.
If your fixed term expires without action, your loan may revert to a floating rate, which is often higher than the fixed rate, and less predictable. If your fixed rate renewal is coming up in a month, you want to be putting your strategy into play now.
With the OCR recently adjusted, banks are responding with new rates. Ask how this affects your choices and whether further changes are expected. We don’t have a crystal ball for interest rates, but we can make some excellent educated assumptions.
If your income, expenses, or goals have changed, this is an opportune time to restructure your loan or even switch lenders. We can guide you through the pros and cons of each move.
Example: You’ve recently received a pay rise (yay) and wisely you have chosen to put that extra money on your mortgage to pay it off faster. Your adviser suggests restructuring to increase your repayments and reduce your loan term, potentially saving you tens of thousands in interest.
If rates rise unexpectedly, how would that affect your budget? Ask your adviser to help you build in some financial resilience through emergency funds, budgeting, planning and investments.
Some lenders may offer incentives — like cashback deals or discounted rates — especially when they’re keen to keep your business or attract new customers. Our advisors sometimes know about offers that aren’t widely advertised, so if you’re weighing up your options, it’s definitely worth asking.
Refixing is a chance to reassess your financial strategy.
Monthly repayments are important, but understanding the long-term cost can help you make a smarter decision. Our advisors can help you calculate the difference to your interest balance based on different scenarios.
If you're in a stronger financial position now, ask about making lump-sum payments or increasing regular repayments to reduce your interest costs. Sometimes if your interest rate comes down, it can be a smart move to continue paying your mortgage down at the same rate while you can, if possible.
Example: You’ve received a $10,000 inheritance and want to put it toward your mortgage. Your adviser checks your fixed loan terms and confirms you can make up to $20,000 in lump-sum payments per year without penalty.
Life can change unexpectedly and sometimes you must break your loan. This is often the case in separations. Breaking your loan can incur a penalty fee. We can help you understand the break fees and how and when they’re calculated so you’re not caught off guard.
Example: You’re considering selling and downsizing your home next year, but your bank is offering a good 2-year fixed rate. Your adviser warns that breaking the loan early could cost you $5,000 in early repayment fees — and suggests a shorter term or floating rate instead.
Your mortgage should evolve with you. Whether you're planning upgrades, downsizing, or investing, make sure your loan structure supports your next steps. Our mortgage advisers can help you structure your mortgage to suit your lifestyle. If you want to go bigger picture, consider going a step further and speaking with one of our financial planners, who can help tie in your mortgage strategy with your cashflow, your risk, your goals, your legacy as well.
Refixing isn’t just about locking in a rate, it’s a strategic decision about aligning your mortgage with your life. A good adviser will help you look beyond the numbers and make a decision that fits your goals and gives you peace of mind.
This article was co-written by Shona and Brendon and peer-reviewed by our financial advisory team.
Disclaimer: Shona is not a financial adviser. The above is generalised information that has been peer-reviewed by the Velocity Financial Advisory team. As always, before you make any financial decisions, discuss your situation with an adviser from Velocity Financial, and seek advice from professionals, such as a lawyer and accountant, to find the best solution for your unique situation.
About Shona: Hi, I’m Shona, the communications and marketing support person for Velocity Financial. Designing effective communications in a complex industry such as Finance is a worthy challenge. Finding ways to bridge gaps between complex financial information, and the everyday needs of people trying to navigate that world through informed choices, is something that I relish. I love deciphering and disseminating the expert knowledge and ideas of our clever team, into simple messages that speak directly to our clients, who are hungry for more knowledge and better understanding (like me!). In my outside life, I am a keen photographer and, like others in the team, I have a passion for the outdoors, especially for hiking. I also train in martial arts and have been known to wield a sword on occasion.
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.