Refixing is choosing a new fixed rate when your current term ends. How fixed and floating differ, and what to watch at rollover.
Refixing is the process of selecting a new interest rate term when an existing fixed-rate period on a mortgage expires.
Fixed locks your rate for a set term — commonly 6 months to 5 years in New Zealand. Certainty of repayments, but break fees apply if you repay early or restructure.
Floating (or variable) moves with the market. More flexible — you can make lump sum repayments without penalty — but the rate can change at any time. Floating rates are usually higher than fixed.
A rollover is the single biggest scheduled change to your cashflow. A portfolio that was comfortable at one rate can become a problem at another, and the change lands on a known date.
Many investors split their lending across several terms so the whole portfolio doesn't roll at once — smoothing the impact of any single rate move.
The bank's offered rate is usually not its best rate. Refixing is a negotiation. Getting a competing quote from a broker or another bank before accepting is routine and frequently worth a meaningful margin.
Break fees can be substantial if you refix or repay before the term ends, particularly when market rates have fallen since you fixed. Always ask for the break cost in writing before restructuring.
Last reviewed: 1 August 2026 · General information only, not financial advice.
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