Refinance savings calculator
Is it worth refinancing a mortgage in New Zealand?
Refinancing pays off when the interest saved at the new rate exceeds the cost of moving — break fees, legal fees and any clawback of an earlier cashback. The number that matters is the break-even point: how many months of savings it takes to recover those costs. Below is that calculation on your figures.
Nil if you are on a floating rate or at the end of a fixed term. Ask your bank for the written figure.
Refinancing to a new lender needs a solicitor to handle the discharge and new mortgage.
Usually clawed back if you leave within two to three years, so it is not free money if you might move again.
Monthly saving
$356.45
- Repayment now
- $3,671.94
- Repayment at new rate
- $3,315.49
- Upfront cost, net of cashback
- $1,500
- Break-even
- 5 months
- Net position after 12 months
- $2,777
This is a general estimate, not financial advice.
Rates change weekly. interest.co.nz publishes what every New Zealand bank is advertising today, and Sorted is the government’s own calculator if you would like to check these numbers against a second source.
Common questions
- How do I know if refinancing is worth it?
- Compare the interest saved against the cost of moving, then look at the break-even point in months. If you expect to hold the loan well beyond break-even, the switch pays for itself. If you might sell or move again soon, it often will not, particularly where a cashback would be clawed back.
- What does it cost to refinance in New Zealand?
- Moving to a new lender needs a solicitor to discharge the old mortgage and register the new one, typically a four-figure sum, plus any break cost on a fixed loan and sometimes a valuation. Staying with your existing bank and simply repricing avoids the legal cost entirely.
- Should I keep the same term or the same repayment?
- Keeping the term lowers your repayment and frees up cash. Keeping the repayment at the lower rate shortens the loan and saves substantially more interest. Both are legitimate; the calculator shows the repayment difference so you can see what keeping it the same would do.
- Is a cashback offer worth taking?
- It reduces the upfront cost of switching, which is why the calculator nets it off. The catch is the clawback period, commonly two to three years, during which leaving means repaying some or all of it. Treat it as a discount on moving costs rather than as income.