How Soon and How Often Can You Refinance a Mortgage?

The legal answer and the practical one

Legally, you can refinance the day after you settle. Nothing in New Zealand law sets a waiting period. Practically, three things decide when a second move makes sense.

1. The clawback period

If your lender paid you a cash contribution, your loan agreement almost certainly says you must repay some or all of it if you leave within a set time. Three or four years is common, and the amount repayable often reduces as time passes. Leave after one year and you may hand back most of it.

Solicitor contributions and legal fee offers usually carry the same condition. Our clawback guide explains how to read the clause.

2. Your fixed terms

Leaving partway through a fixed term can trigger a break fee. Whether it's large or nil depends on how rates have moved since you fixed, so the natural refinance points are the dates your fixed terms end. If your loan is split across terms, those dates may be years apart, which complicates a clean exit. Here's how break fees are worked out.

3. The cost of moving each time

Every switch means legal fees and a discharge fee. A new lender's contribution may cover them, but contributions come with a new clawback period, so the cycle resets.

What lenders think of frequent switchers

They notice. Your credit file shows each application, and a new lender can see how long you've held your current loan. One move every few years is ordinary. Three lenders in three years invites questions, and some lenders won't pay a cash contribution on a loan that was refinanced recently.

Lenders also expect to see a repayment track record. If your loan is only a few months old, there isn't one yet, and most prefer at least six months of statements.

A sensible rhythm

For most households, the pattern that works is to review at every fixed-term expiry and move only when the numbers are clear. Reviewing costs nothing. Moving does. In our experience people who do this end up switching every three to five years, not every year.

This article explains how New Zealand lenders generally assess these situations. It is general information, not personalised financial advice, and lender policy changes often — check your own position with a registered adviser. Official sources: Reserve Bank of New Zealand for lending policy and the OCR, and Sorted.org.nz for independent government-backed money guidance.