Home Loan Factory interactive New Zealand mortgage refinance and break fee savings calculator icon

Refinance Calculator

Calculate your potential savings from switching banks or breaking your fixed term, factoring in break fees and new cashbacks

Should I Switch Banks?

NZ Mortgage Refinance & Break Fee Calculator

1. Current Bank Details

Please fill out all current bank details.
$

2. Apples to Apples Rate Comparison

Let's compare what your current bank would offer you today versus the new bank.
Need to find the latest advertised rates? Check out our live mortgage rate comparison tool here.

Please enter both current and new rate offers.
%
%
%

3. Loan Splits & Break Fees

Add up your loan splits. Enter any break fees for fixed terms you are ending early. If you don't know what your break fees are, check with your current bank.

Make sure to include revolving credit limits (not balances)!
Understanding Break Fees: Banks charge these to recover costs if you break a fixed term early and interest rates have dropped since you fixed. They can change daily and are heavily influenced by wholesale interest rate movements.
Please ensure all split balances, remaining months, and break fees are entered for fixed splits.

4. Extra Setup & Costs

$
Note: Having less than 20% equity usually triggers the need for a registered valuation to satisfy the new bank. Your cashback may also be reduced (we've dropped the default to 0.5%, but adjust this based on your adviser's actual advice).
Estimated Net Benefit
$0
This is the estimated potential net benefit of refinancing. It accounts for the new cashback plus interest saved over the remaining fixed terms, minus legal fees, valuation costs (if any), break fees, and bank clawbacks. Note: This tool provides estimates only; final numbers depend on live rates and your bank's final calculations.
Estimated Financial Breakdown
Total Loan Calculated $0
Potential New Bank Cashback $0
Estimated Interest Savings (Over remaining fixed terms & 1st yr floating)
$0
Estimated Legal Fees -$0
Estimated Total Break Fees -$0
Estimated Clawback Amount -$0
Oops, please fill out all fields! 👀
Category
Refinancing
Information

Is It Worth Switching Banks?

‍Refinancing your mortgage to a lower interest rate can save you thousands of dollars, but it’s rarely as simple as just looking at the headline rate. This calculator helps you weigh your potential interest savings against the real-world costs of breaking your current loan.

It is 100% free to view your results with no mandatory sign-ups, logins, or hidden data capture.

1. The Savings vs. The Costs
  • Interest Savings: A lower rate means lower regular payments, or the ability to keep your payments the same and pay off your house years faster.
  • Break Fees & Legal Costs: If you break a fixed-term contract early, your current bank will likely charge a break fee. You may also have legal fees to shift the mortgage title to a new lender.
2. The Cashback Equation
  • Clawbacks: If you have been with your current bank for less than 3 or 4 years, leaving them might trigger a 'clawback', meaning you have to repay part of the original cashback they gave you.
  • New Cash Contributions: The good news? Your new bank wants your business. They will usually offer a brand-new cash contribution that can offset your break fees, cover your lawyer, and often leave you with cash to spare.

Next Step: Let Us Do the Hard Maths

‍This calculator provides a fantastic starting guide, but break fees change daily based on wholesale interest rates. Send your results to a Home Loan Factory adviser, and we will request your exact break fees from your bank, negotiate a new rate and cashback package, and tell you exactly how much you will actually save.

‍

Talk to an expert
FAQS

Frequently Asked Questions About Refinancing

Question 1: Should I break my fixed mortgage early to get a lower rate?

It depends entirely on the maths. If the long-term interest you save by moving to a lower rate is greater than the break fee your bank charges you to leave, it makes financial sense. If the break fee wipes out all your savings, you are usually better off waiting until your fixed term expires.

Question 2: What is a mortgage break fee?

When you lock in a fixed interest rate, the bank borrows money on the wholesale market to fund it. If you break your contract early and interest rates have fallen, the bank loses money. A break fee is simply their way of recovering that specific financial loss. It is a mathematical calculation, not a random penalty.

Question 3: Will a new bank pay for my legal fees if I refinance?

Yes, in most cases. When you refinance to a new New Zealand bank, they will typically offer a cash contribution (a cashback) to win your business. This lump sum is designed to cover your legal fees and valuation costs, and often leaves you with a bit of extra cash in your pocket.

Question 4: What happens to my current cashback if I switch banks?

If you received a cashback from your current bank when you bought the house or last refinanced, it usually comes with a 3-to-4-year 'clawback' period. If you leave the bank before that period ends, they will ask you to repay a pro-rated portion of that cash. We always factor this into your refinance calculations.

Question 5: The calculator shows I will save money—what is my next step?

This calculator is a great starting guide, but break fees fluctuate daily based on the wholesale market. To get an exact figure, speak to a Home Loan Factory adviser. We will find out your live break fees, calculate any clawbacks, and negotiate a new rate and cashback to ensure the move is genuinely profitable for you.

Expert advice for your home loan, KiwiSaver, and beyond.