Refinancing your mortgage in NZ
See how much a lower rate saves each week, and the week it pays back the cost of switching.
$13 a week less
$875,308 paid back in total
Estimate for $500,000 over 25 years, moving from BNZ's 5.19% to ASB's 4.99% 1-year fixed rate, checked 21 Oct 2026. Fees and conditions are below.
What are banks charging right now?
With a 20% deposit, 1-year fixed rates at the eight big banks run from 4.99% to 5.19%. On $500,000 over 25 years, that gap is about $13 a week, or more than $17,000 over the loan.
Ask your own bank to match the lowest rate first, because refixing with them costs nothing. Tap any rate to try it in the calculator.
| Lender | Rate (p.a.) | Fee | Each week | Paid back in total |
|---|---|---|---|---|
| ANZ$875,308 in total | $0 | $673 | $875,308 | |
| ASB$875,308 in total | None listed | $673 | $875,308 | |
| TSB$875,308 in total | None listed | $673 | $875,308 | |
| Kiwibank$889,324 in total | None listed | $684 | $889,324 | |
| BNZ$892,846 in total | Up to $150 | $687 | $892,846 | |
| Westpac$892,846 in total | $0 | $687 | $892,846 | |
| SBS Bank$892,846 in total | $0 | $687 | $892,846 | |
| The Co-operative Bank$892,846 in total | None | $687 | $892,846 |
1-year fixed rates for owner-occupiers with a 20% deposit, on $500,000 over 25 years, paid weekly; the fee is the bank's set-up fee. Rates and fees from the eight banks' websites, checked 21 Oct 2026.
Have a broker run my numbersIs refinancing worth it after the costs?
It's worth it once the weekly saving has paid back what it costs to move: legal fees, the old bank's discharge fee, and any break fee or cashback you have to repay. At $13 a week, $1,030 of costs takes 77 weeks to earn back.
Put in your own loan to see your break-even week. Nothing you type leaves your screen unless you send the form.
A licensed broker can ask your bank to match a rate, or move the loan if that pays. Compare Loans passes on your numbers ($500,000, 25 years left), so you don't have to repeat them.
Have a broker run my numbersHow much can refinancing $500,000 save?
Moving $500,000 from 5.19% to 4.99% saves $13 a week. With your own lawyer, it takes 77 weeks to earn back the fees. If the new bank's legal service does the work, you're ahead in week 3.
Breaking a fixed rate early rarely pays, because the break fee takes back roughly the interest you'd save. Repaying cashback to your old bank can push your break-even out by years.
| Example | Saving each week | Cost to switch | Pays back in | After 1 year |
|---|---|---|---|---|
| Fixed term ended, own lawyerCosts $1,030 | $13 | $1,030 | Week 77 | $328 behind |
| Fixed term ended, bank's legal serviceCosts $40 | $13 | $40 | Week 3 | $662 ahead |
| Breaking a 5.79% fix with 12 months leftCosts $5,030 | $55 | $5,030 | Week 92 | $2,182 behind |
| Repaying $2,500 of cashbackCosts $3,530 | $13 | $3,530 | Week 262 | $2,828 behind |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
Have a broker run my numbersHow much does it cost to refinance in NZ?
About $1,025 to $1,820 in legal and discharge fees, if your fixed term has ended. If the new bank's legal service does the work, which BNZ and Kiwibank offer to eligible borrowers, you pay only the discharge fee of $30 to $100.
A break fee or a cashback clawback can add thousands, so ask your bank for both figures in writing before you apply anywhere else.
| Cost | Who charges it | Typical amount |
|---|---|---|
| Legal feesYour lawyer | Your lawyer | $990 to $1,475 |
| Bank legal serviceThe new bank | The new bank | $0 at BNZ or Kiwibank |
| Discharge feeYour old bank | Your old bank | $30 to $100 |
| Set-up feeThe new bank | The new bank | $0 to $150 |
| ValuationA valuer | A valuer | Often $0 |
| Break feeYour old bank | Your old bank | $0 once your fixed term ends |
| Cashback clawbackYour old bank | Your old bank | Part of any cash you got |
Fees from lawyers' and banks' websites, checked 21 Oct 2026.
How are break fees calculated?
Your bank charges a break fee if you leave a fixed rate early and rates have fallen since you fixed. If rates have risen, the fee is usually $0.
The fee depends on how much you repay, how far rates have fallen and how long is left on your term. TSB says a 0.50% fall on $100,000 with 18 months left costs about $750. On $500,000 with 12 months left, a 0.80% fall costs about $4,000.
- Most banks let you repay about 5% of the loan a year without a break fee.
- ANZ also lets you pay up to $250 a week more, and TSB up to $10,000 a year.
- Ask your bank for the break fee in writing before you apply elsewhere.
Refinance, refix, restructure or top up?
You have four options with a home loan, and only refinancing to a new bank means paying a lawyer and a discharge fee. Refixing gives you a new fixed rate with your own bank when the term ends, and it's free at BNZ and Kiwibank.
Restructuring changes how your loan works, and a top-up borrows more against your home. Both get the same checks as a new loan.
| Move | What changes | Lawyer | Typical cost |
|---|---|---|---|
| RefinanceA new loan, usually at a new bank | A new loan, usually at a new bank | Yes | About $1,030 |
| RefixA new fixed rate at your bank | A new fixed rate at your bank | No | $0 |
| RestructureSplit terms or add an offset | Split terms or add an offset | No | $0 to $50 |
| Top-upBorrow more on your home | Borrow more on your home | Usually no | $0 to $100 |
Fees from the banks' websites, checked 21 Oct 2026.
How do you refinance a mortgage in NZ?
It takes four steps and usually a few weeks. Start with your own bank, because a lower refix rate there costs nothing and needs no lawyer.
If your bank won't move, a new bank checks your income and spending the way it would for any new loan. A broker can handle the application for you.
- 1
Check your loan. Find your rate, balance and the date your fixed term ends. Your banking app shows all three.
- 2
Add up the costs. Ask your bank for any break fee in writing, then add legal and discharge fees and any cashback you'd repay.
- 3
Ask your bank first. Ask them to match a lower rate. If they won't, compare other banks, or ask a broker to do both.
- 4
Apply and settle. The new bank checks your payslips and statements. Then a lawyer or the bank's legal service moves the loan.
When should you start refinancing?
About 60 days before your fixed term ends.
Approval, the lawyer's work and settlement take several weeks. Starting two months out means the new loan is ready the day your old term ends, with no break fee.
Most banks let you lock in a new rate 30 to 60 days ahead. BNZ and Westpac charge $25 to cancel a rate lock.
When does refinancing not pay?
When the costs of moving are bigger than what you'd save before your next refix. In these five cases, refixing with your own bank or waiting usually costs less.
Asking your bank for a lower rate costs nothing, so do that first.
- The rate gap is small and you pay a lawyer. A 0.20% drop saves $13 a week and takes 77 weeks to cover $1,030 of fees.
- Your fixed term has months to run and rates have fallen. The break fee takes back roughly what you'd save.
- You got cashback from your bank in the last 3 or 4 years. You'd have to pay some or all of it back.
- You own less than 20% of your home. The new bank charges standard rates too, such as 5.59% at ANZ.
- You'd move car loan or card debt onto the mortgage. $20,000 at 13.90% costs $27,774 over 5 years; moved onto a 4.99% mortgage over 25 years, it costs $35,012.
Why do people refinance a mortgage?
Most people move for a lower rate, often when their fixed term ends and there's no break fee to pay. Others want to borrow more, change how the loan works, or take advantage of a rise in their home's value.
- A lower rate. 1-year fixed rates run from 4.99% to 5.19% at the big banks.
- Your fixed term has ended, so there's no break fee to pay.
- You want to borrow more against your home, for a renovation or another cost.
- You want a different setup, such as a split loan or an offset account.
- You want a shorter term to clear the loan sooner, or a longer one for lower repayments.
- Your home is now worth more, so you own 20% and get special rates. At ANZ, that takes the repayment on $500,000 from $714 to $673 a week.
Can a broker help you refinance?
Yes. A licensed broker compares the banks on their panel, asks your bank to match a better rate, and handles the application if moving pays. The lender usually pays the broker, and your broker must tell you how they're paid and about any fee before you sign.
Compare Loans does not lend money and does not give financial advice. It passes your enquiry to a licensed broker only when you send the enquiry form.
What else do people ask about refinancing?
How long does refinancing take in NZ?
Usually several weeks from applying to settling. The new bank approves the loan first, then you sign the forms and a lawyer or the bank's legal service moves the mortgage. Most banks hold a new fixed rate for up to 60 days, so start early.
Do I need a lawyer or a valuation to refinance?
You need a lawyer unless the new bank's legal service does the work, which BNZ and Kiwibank offer for eligible borrowers. A lawyer costs about $990 for a standard refinance. Many switches need no valuation, but Kiwibank asks for one on apartments, townhouses and leasehold homes.
How much does it cost to discharge a mortgage in NZ?
Your old bank charges $30 to $100: ANZ $100, Westpac $50, BNZ $40 and Kiwibank $35. Your lawyer also pays a small government fee, about $122, to remove the old mortgage from the title.
Can I add a top-up or other debt when I refinance?
Yes, if the new bank's checks allow the bigger loan. Moving short-term debt onto a 25-year mortgage costs more overall unless you keep paying it off fast: $20,000 at 4.99% costs $35,012 over 25 years, but $22,608 over 5 years.
Does refinancing affect my credit score?
Each full home loan application adds a credit check to your file. Asking a broker to compare banks before you apply keeps the number of applications down.
What is the 2% rule for refinancing?
It's an American rule of thumb: refinance when rates fall 2 points. In New Zealand it's more useful to work out your break-even week. On $500,000, a 0.20% drop saves $13 a week, so $1,030 of costs takes 77 weeks to earn back.
Will my bank lower its rate if I ask?
Often, yes. BNZ, for one, shows existing customers discounted refix rates in its app. Refixing with your own bank costs nothing and needs no lawyer, so ask before you switch.
Should I refinance now or wait for the OCR decision?
Nobody knows which way the 28 October 2026 decision will go. If your fixed term ends soon, you can lock in a rate up to 60 days ahead at ANZ, BNZ or Westpac. BNZ and Westpac charge $25 to cancel the lock if rates fall.
Will a bank pay me cash to switch?
The big banks don't advertise cashback for switching; any offer is agreed loan by loan. If you got cashback from your current bank, you may have to repay it if you leave within 3 or 4 years. A $5,000 payment 18 months ago can add about $2,500 to your switching cost.
Want a licensed broker to run your numbers?
Answer three short questions and a licensed broker checks whether moving, or refixing where you are, leaves you ahead.
Compare Loans refers you to a licensed broker and is paid a referral fee by the broker. This is not a loan application. How Compare Loans makes money