What It Costs to Refinance a Mortgage in NZ
There are five possible costs when you move a mortgage to another lender. Most people only pay two of them, and a cash contribution from the new lender often covers those.
The five costs, and who actually pays them
People ask us whether refinancing is free. It isn't, but it's often cheaper than expected, and the bill depends almost entirely on timing.
| Cost | What it is | Can you avoid it? |
|---|---|---|
| Legal fees | Your lawyer discharges the old mortgage and registers the new one. | No, but the new lender's cash contribution often covers it. |
| Break fee | Charged by your current lender if you repay a fixed loan before its term ends. | Yes. Move on the day the fixed term ends and there's nothing to break. |
| Cashback clawback | Repaying some or all of a cash contribution your current lender gave you. | Yes, by waiting until the clawback period has passed. |
| Discharge fee | An admin fee your current lender charges to release its mortgage. | Usually not. It's normally a small amount. |
| Valuation | A registered valuation, if the new lender wants one. | Often. With plenty of equity many lenders accept an online estimate. |
So a homeowner whose fixed term is ending, who has been with their bank longer than the clawback period, usually pays legal fees and a discharge fee and nothing else.
Legal fees
This is the one cost nobody escapes, because only a lawyer or conveyancer can register a mortgage against your title. Law firms publish fixed refinance fees, and as at November 2026 the ones we see advertised mostly sit between about $900 and $1,800 plus GST and disbursements. A trust-owned property or a second security pushes that up.
Ask for a fixed quote before you start. We cover the detail in our guide to refinance legal fees.
Break fees and clawback: the two that can sink a switch
A break fee compensates your lender for interest it loses when you leave a fixed rate early. If rates have fallen since you fixed, it can run into thousands. If rates have risen, it may be nothing at all. You can't guess it, so ask your bank for a written quote. Here's how break fees are worked out.
Clawback is the quieter trap. If your bank paid you a cash contribution when you joined, your loan agreement will say how long you must stay, often three or four years, and how much you repay if you leave sooner. Check the agreement before you get excited about a new offer.
What comes back the other way
Many lenders pay a cash contribution to borrowers who move to them, and some contribute to legal fees as well. Amounts change often and depend on your loan size and equity, so we don't quote them here. Read how cashback offers work for the conditions that come attached.
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.
Refinance costs: common questions
Want your refinance costed properly?
Tell us your lender, balance and fixed-rate end date. We'll get the real break fee and clawback figures and show you whether switching pays.
- ✓ Your bank's offer compared with the 23 lenders on our panel
- ✓ Break fees, legal costs and any cashback clawback worked out first
- ✓ We only recommend switching when the numbers work
- ✓ No fee on residential home loans: the lender pays us
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