What Happens When Your Fixed Rate Ends: The NZ Refix Playbook

The refix timeline

1. ~60 days out: most banks let you lock a new fixed rate in advance. Your bank will message you with 'special' rates — treat these as an opening offer.
2. ~30 days out: this is the sweet spot to compare the whole market: your bank's offer vs what other banks would pay you (rates plus cashbacks) to move.
3. Rollover day: do nothing and you float — often 1%+ above competitive fixed rates. Floating briefly is fine as a strategy; floating by neglect is expensive.

Why the refix is your leverage moment

Banks price for inertia. The advertised rollover rates you're emailed are rarely the bank's best — retention teams hold discretion for customers who push or who present a competing offer. A refix is also the cheapest possible moment to restructure: no break fees, full freedom to change terms, split differently, or change banks entirely (collecting a refinance cashback in the process).

The four refix decisions

• Term: shorter terms track the falling OCR sooner; longer terms buy certainty. Match the term to your life plans — sale, renovation, family changes — not to a rate forecast.
• Structure: splitting across two or three terms means no single repricing day can hurt you.
• Repayments: a refix at a lower rate is the ideal moment to keep repayments unchanged and quietly cut years off your loan.
• Lender: if another bank's rate + cashback beats your bank's best after legal costs, switching at rollover is clean — no break fees.

Refix vs refinance: the honest comparison

Staying is simpler; moving can be worth thousands. The maths: (rate saving over the new term) + (new bank's cashback) − (legal fees ≈ $1,000–$2,000) − (any clawback from your current bank). We run this both ways for clients at every rollover — often the winning move is using a competing offer to make your own bank sharpen its pencil.

Don't refix on autopilot

Your loan structure was set for the person you were when you took it. Income changes, family changes, and rate-cycle changes all shift the right answer. Ten minutes with an adviser before you click 'accept' on the bank's email is free — and regularly worth more than any rate move of the year.

Frequently asked questions

How early can I lock a new fixed rate in NZ?

Most banks allow you to secure a rollover rate up to around 60 days before your current term ends — useful when rates are rising, and worth timing carefully when they're falling.

What happens if I do nothing when my fixed rate ends?

Your loan reverts to the bank's floating rate automatically. Floating deliberately for flexibility is a strategy; floating because you missed the date is just paying extra.

Can I negotiate the rates my bank offers at refix?

Often, yes. Advertised rollover rates are an opening position — retention discretion exists, especially when the bank knows a broker is comparing the market for you.

Is there a break fee if I switch banks at the end of my fixed term?

No break fee applies once the fixed term ends — that's what makes rollover the cleanest moment to refinance. Legal fees and any cashback clawback still apply.