How to refix your mortgage: what happens when a fixed term ends

When your fixed term ends, you choose again: refix for a new term, split the loan across terms, or move to floating. If you do nothing, the loan generally rolls onto the floating rate. ANZ says you can "fix it at another rate, or let your loan roll onto the floating rate", and Kiwibank says "If you don't re-fix, your fixed term automatically rolls onto a variable rate." Because floating is the highest rate on the board as at 10 November 2026 (average 6.31% against 5.06% for one year fixed), drifting onto it can be costly: on a $550,000 balance with 27 years left, that is $3,539.12 a month against $3,116.36. Below we walk through the options with worked figures. This is general information, not financial advice.

What happens at the end of a fixed term

A fixed rate lasts for the term you chose, from 6 months to 5 years. When it ends:

• The fixed rate stops. You can refix at the rates the bank is offering then. Kiwibank: "When your fixed term expires, you can re-fix your home loan to a new term and rate."
• If you do nothing, you move to floating. Both ANZ and Kiwibank say an expiring fixed rate rolls onto the floating (variable) rate. Check your own bank's terms.
• Your repayment is recalculated. The new repayment is the standard table loan repayment on the balance you still owe, over the years left in the loan, at the new rate (see how mortgage repayments work).
• There is no break fee. A break fee only applies if you leave a fixed rate early. At expiry you are free to refix with your bank, repay a lump sum, or move to another bank. See switching banks.

You can often arrange your next rate before the expiry date. ANZ says "It's easy to refix online via the ANZ goMoney mobile app or Internet Banking", and Kiwibank that "Re-fixing online is the quickest way to lock in any discounted rate you're eligible for." ANZ also offers a Reserve Rate Agreement to lock in a rate in advance, with a $25 non-utilisation fee if you cancel or change it.

Worked example: refixing $550,000 with 27 years left

Say your fixed term is ending with $550,000 still owing and 27 years left on the loan. Here are the options at the average of the five main banks' lowest advertised rates for each term, rates as at 10 November 2026.

Monthly and fortnightly figures are true repayments, each worked out for that frequency. The "interest over the term" column covers different lengths of time, so compare it per year, not across rows. Floating assumes the rate stays at 6.31% for a year; it can change at any time.

What the table shows, at these rates:

• Shorter terms have the lowest repayments today. One year at 5.06% is $291.57 a month less than 5 years at 5.93%.
• Longer terms buy certainty. At 5 years you know your repayment until the balance is about $501,944, but you pay more for it now, and you take on break fee risk for longer if you need to sell or repay a lot.
• Short terms mean refixing again soon. A 6-month or 1-year rate puts the next decision, and whatever rates are then, close at hand.

Our fixed vs floating calculator runs this comparison on your own balance and lets you test a different rate for the next refix. For how to weigh certainty against cost, see fixed vs floating.

Splitting the loan when you refix

You do not have to put the whole balance on one term. Kiwibank says "You can split your home loan into multiple loans and choose to have more than one fixed loan," and the parts can be mixed with floating, offset or revolving loans. Sorted's advice for split loans is to "work out the fixed and floating amounts separately".

Example: split the $550,000 into $275,000 on 1 year at 5.06% and $275,000 on 3 years at 5.59%. The repayments are $1,558.18 and $1,646.25, so $3,204.43 a month in total. That is $88.07 more than putting it all on 1 year, and $88.07 less than putting it all on 3 years. In return, half the loan has a known rate for 3 years, and only half of it refixes next year.

A split also gives you something to work with next year. When the 1-year part comes up, you can refix it on its own, add a lump sum to it without a break fee, or move it to a different term to keep the dates spread.

Many people use a split to spread their refix dates, so they are never refixing the whole loan at one moment. Our split loans guide goes into this in more detail.

If your repayment falls, consider keeping it

If you are refixing at a lower rate than before, your recalculated repayment may fall. Keeping the old, higher repayment is one of the easiest ways to pay the loan off faster, because you are already used to it.

Example: suppose you were paying $3,500 a month before, and the refix at 5.06% on $550,000 over 27 years brings the repayment down to $3,116.36. If you keep paying $3,500 and the rate stays at 5.06%, the loan is paid off in about 21 years and 7 months instead of 27, and you save about $105,923 of interest.

On a fixed rate, paying more than the minimum counts as an extra repayment, so keep within your bank's allowance. ANZ allows up to $250 a week more (the first increase each year) plus a 5% lump sum; BNZ and Kiwibank up to 5% of the loan a year. We have not confirmed ASB's or Westpac's allowances. The extra $383.64 a month here is about $4,604 a year, well under 5% of $550,000. See extra repayments.

A refixing checklist

1. Know the date. Find when each part of your loan comes off its fixed rate. Your bank's app or statements show it.
2. Check the rates on offer. Compare your bank's rates with others on our mortgage rates page. Advertised special rates usually need at least 20% equity.
3. Ask your bank. Ask what rates it can offer you, and compare them with the advertised rates.
4. Decide the structure. One term, a split, or part floating. Think about lump sums you expect and when you might sell.
5. Choose the repayment. Keep a higher repayment if you can, or change frequency (see fortnightly vs monthly).
6. Use the moment. Expiry is the one time you can repay a large lump sum or move banks without a break fee. See lump sum repayments.
7. Do not let it drift. If you miss the date, the loan will usually roll onto floating, which on 10 November 2026 is the highest rate on offer. You can normally fix again afterwards, but you pay the floating rate in the meantime.

This guide is general information, not financial advice. Rates as at 10 November 2026, the average of the five main banks' lowest advertised rates in the interest.co.nz table, which shows no date of its own. A mortgage adviser can help with your situation.

Questions people ask

What happens if I don't refix my mortgage?

At ANZ and Kiwibank, the loan rolls onto the floating (variable) rate when the fixed term ends. Check your own loan terms for other banks. As at 10 November 2026, floating is well above the fixed rates.

Can I refix early?

You can usually choose your next rate before the expiry date, and ANZ offers a Reserve Rate Agreement to lock one in ahead of time. Breaking a fixed rate before it ends is different and may cost a break fee.

Will my repayment change when I refix?

Yes. The bank recalculates it on the balance and years left at the new rate. On $550,000 with 27 years left, a 1-year rate of 5.06% gives $3,116.36 a month, and a 5-year rate of 5.93% gives $3,407.93.

Can I switch banks when my fixed term ends?

Yes. At expiry there is no fixed rate to break, so no break fee. A new bank will need to approve the loan. Our switching banks guide covers what is involved.