So you’ve just received a letter from your bank telling you your fixed rate is about to expire, you’re probably wondering… “what happens next?”
Refixing your mortgage in NZ is one of the most common and most important financial decisions existing homeowners face, yet it’s also one of the least talked about. Most people sign up for a home loan, settle into their repayments, and then suddenly find themselves at the end of a fixed term with a decision to make and not much time to make it.
The good news? You have more options than you might think. And making an informed choice could save you a meaningful amount over the life of your loan. This guide is here to walk you through everything you need to know about refixing your mortgage, in plain English, so you can approach that expiry date with confidence instead of stress.
What Does 'Refixing Your Mortgage' Actually Mean?
When you first took out your home loan, you likely chose a fixed interest rate for a set period — commonly one, two, or three years. During that time, your interest rate stayed the same regardless of what happened in the wider market. That predictability is one of the big draws of fixing your rate.
When that fixed term comes to an end, your loan doesn’t simply disappear. Instead, you reach what’s called a refix date, or a rollover date. At this point, you need to decide what to do next. In simple terms, refixing your mortgage means choosing a new interest rate and term to replace the one that’s expiring.
If you do nothing, most lenders will automatically roll your mortgage onto a floating (variable) rate, which is typically higher than most fixed rate options. That’s not necessarily the end of the world, but it does mean you could be paying more than you need to if you simply let it slide without reviewing your options first.
Your Main Options When a Fixed Term Expires
When your fixed rate ends, you essentially have four paths in front of you:
- Refix with your current lender
You agree to a new fixed rate home loan and term with the bank you’re already with. It’s the path of least resistance, and sometimes it’s genuinely the right move, but only if the rate on offer is competitive. - Switch to a floating rate
A floating rate moves with the market, which means it can go up or down. This option suits borrowers who need flexibility — for example, if you’re planning to sell your home, make a large lump sum payment, or aren’t sure what the next year looks like financially. - Split your loan
Many New Zealand homeowners choose to put part of their mortgage on a fixed rate and part on a floating rate, this can also be called a combination home loan. This gives you the security of knowing what some of your repayments will be, while keeping flexibility for the rest. - Refinance to a new lender
This is where many people leave money on the table by not exploring it. Refinancing your mortgage means moving your home loan to a different lender who may offer a better rate, better features, or both. It involves a bit more admin, but with the right support it’s often far more straightforward than people expect — and we’ll come back to this shortly.
How to Choose the Right Fixed Term Length
One of the trickier parts of the refix process is deciding how long to fix for. Should you go one year, two years, three years, or longer? The honest answer is that it depends on your personal circumstances and your view of where rates are heading… and nobody has a crystal ball.
Here are a few things to think about:
- Your financial plans.
Are you planning to sell your home in the next year or two? Do you expect a significant change in income? Fixed rates generally come with break fees if you exit early, so locking in for too long when your circumstances might change can cost you. - The rate environment.
If rates appear to be falling, a shorter fixed term means you could refix at a lower rate sooner. If rates look like they’re heading up, a longer fixed term could lock in today’s pricing before things move. - Your comfort with uncertainty.
Some people sleep better knowing their repayments won’t change for the next two years. Others prefer the flexibility of a shorter commitment. Both are valid — the right choice is the one that fits your life.
This is exactly the kind of conversation a good mortgage advisor earns their keep on. They can help you weigh up the trade-offs based on your specific situation, rather than giving you a one-size-fits-all answer.
How Early Should You Start Reviewing Your Options?
Ideally, you want to start thinking about your refix at least 60 to 90 days before your fixed term expires. Some lenders allow you to lock in a new rate in advance (called a rate lock) meaning you can secure today’s rate even if you’re not rolling over for another few weeks. This can be really useful if rates are moving and you want certainty.
Starting early also gives you time to properly compare your options. If you wait until the week before your expiry date, you’re likely to feel pressured into just accepting whatever your bank puts in front of you. That’s not a great position to be in.
Getting in touch with a mortgage broker well ahead of time means they can do the legwork for you — comparing rates across multiple lenders, checking your current loan structure, and presenting you with options that fit your circumstances — without you having to spend hours on hold or trawling through comparison websites.
How Priority Home Loans Can Help
At Priority Home Loans, we work with clients to make the refix and refinancing process as smooth and stress-free as possible. We compare options across 20+ lenders — not just the big banks — so you can be confident you’re seeing a genuine cross-section of what’s available in the market.
We’ll sit down with you (or connect with you remotely if that suits better), take a proper look at your current loan, your goals, and your financial situation, and then walk you through your options.
Whether you’re deciding between a one-year and two-year fix, weighing up whether to refinance, exploring a cash back deal, or simply trying to understand how changes to the debt to income ratio rules in NZ might affect your options, we’re here to help you make the decision that’s right for you.
We’re proud of our 5-star rating and the trust our clients place in us. We’d love the opportunity to show you what that looks like in practice. If your fixed term is coming up in the next few months, now is a great time to get in touch.
We are here to help you
This article is general information only and does not constitute personalised financial advice. Everyone’s situation is different, so please seek advice tailored to your individual circumstances before making any decisions about your mortgage. Get in touch with the team at Priority Home Loans for advice specific to your situation.
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