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Making Smart Moves in a Changing Rate Market
As interest rates continue to shift across New Zealand, many homeowners are asking: Should I refix my mortgage, or is it time to refinance?
While the two options sound similar, the right move can make a big difference to your long-term financial position. Here's what each one means — and how to decide which is right for you.
What Does It Mean to Refix Your Mortgage?
Refixing means locking in a new fixed-rate term with your existing lender once your current fixed period ends. It’s a straightforward way to keep things rolling without changing banks.
You might consider refixing if:
- You're happy with your current bank
- You want a hassle-free option
- You're not expecting significantly better rates elsewhere
- You're eligible to get a cashback payment from the bank to stay with them
Refixing is often a fast and cost-free process, but it still pays to check the market. Even a small rate difference could save you thousands over the life of your loan.
What Is Refinancing?
Refinancing involves moving your mortgage to a new lender. This gives you the opportunity to find a sharper rate, rework your loan structure, or even release equity for renovations or investments.
Refinancing might be the right move if you:
- Want to secure a better rate or cashback deal
- Need more flexible loan options
- Want to restructure your loan to suit your goals
- Are planning renovations, investing, or consolidating debt
There may be costs involved — like break fees, legal costs, or new setup fees — but these can often be offset by lender incentives or long-term savings.
Refix or Refinance — Which Is Better for You?
Here are a few key things to consider when weighing up your options:
📈 Interest Rate Trends
If rates are likely to rise, locking in sooner may give you peace of mind. If they’re falling, you might consider going floating or fixing for a shorter term.
🎯 Your Financial Goals
Are you aiming to reduce your payments, pay your loan off faster, or free up funds for a project? Your goals will guide the best structure.
💰 Cashback Offers & Sweeteners
Banks often offer cashback to win new business — but don’t get swayed by short-term cash if the long-term rate isn’t competitive.
🔧 Loan Structure
Refinancing opens the door to new features like offset accounts, interest-only options, or splitting your loan into multiple portions.
💡 Our Advice? Don’t Just Tick the Box.
When your fixed rate expires, it’s tempting to accept whatever your bank offers. But even a small improvement in your interest rate can lead to serious long-term savings.
A quick mortgage review could save you thousands — or open the door to smarter ways of using your home loan.
📞 Let's Optimise Your Finance
At Optimise Finance, we’ll help you compare lenders, understand your options, and structure your mortgage to fit your lifestyle and goals.
Get in touch for a free, no-obligation mortgage review — we’ll help you make the smart move.
👉 Contact Us:
📧 matt@optimisefinance.co.nz or 021 581 502
📍 Based in Orewa, Auckland and Mangawhai– serving clients across NZ
Disclaimer: The information in this article is provided for general informational purposes only and does not constitute financial, legal, tax, or other professional advice. While we strive for accuracy, we do not guarantee that the information is complete, up to date, or free from errors. Before making any financial or legal decisions, we strongly recommend seeking independent professional advice tailored to your individual circumstances.
To the fullest extent permitted by law, we disclaim all warranties, express or implied, including but not limited to accuracy, reliability, or suitability for any specific purpose. We accept no liability for any loss or damage arising from reliance on this information.
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