Refinance Calculator

It depends entirely on the maths. If interest rates have dropped since you fixed your mortgage, your current bank will likely charge you a "break fee" to compensate for their financial loss. You may only want to break your mortgage if the interest you save on the new, lower rate (plus any new bank cashback) outweighs the break fee and legal costs associated with switching.

When you take out a mortgage, banks often give you a cash contribution (cashback) as a welcome gift. However, this comes with strings attached. If you refinance and leave that bank within a certain timeframe—usually 3 to 4 years—they will ask for some or all of that money back. This is known as a clawback, and it usually steps down over time (e.g., 100% in year one, 66% in year two, etc.).

Even though you are just moving a debt from one bank to another, the old bank's mortgage needs to be officially discharged from your property title, and the new bank's mortgage registered. A solicitor or conveyancer must handle this legal process. In New Zealand, you can typically expect this to cost around $1,000 to $1,500.

Usually, you only need a registered valuation if you have less than 20% usable equity in your home. If your home's value has dropped, or if you borrowed heavily to get into the market recently, the new bank may require an independent valuation (costing around $1,000) to confirm the property's worth before they agree to take on your loan.

No. While the calculation method is roughly similar across NZ banks (based on wholesale interest rate movements and the time remaining on your fixed term), the exact formula and the wholesale rates they use differ. Break fees change daily, so an estimate today might be different tomorrow. Always ask your bank for an exact quote valid for that specific day, as there is no reliable way for us to calculate or estimate this.