Worried about your mortgage being up for renewal? What are your options?

If you’re feeling the pressure with mortgage interest rates increases, you’re not the only one.

A recent banking survey by Horizon indicated there is a lot of pressure already on home owners with more to come.

Around 3% of New Zealand mortgage holders are fearful they may have to sell a property over the next year – that’s equivalent to 43,000 home loans.

In addition the study showed 51% of mortgages are due to renew and will roll over to the higher interest rates. The study showed almost one-in-three borrowers on fixed rates will see reviews between June and October this year, with 51% falling sometime in 2024.

Stephen Robertson from My Money says that “This is going to be a big shock to some borrowers. If you’ve had $500,000 fixed on 2.75% and you refix at 7.25% you’ll be looking at a monthly increase of $1,300. That’s a 36% increase, equating to $392,000 in additional interest payments over 25 years.”

In top of this, household wealth has fallen by 9 percent since the end of 2021.

That’s a lot of pressure on households.

Are you up for renewal soon?

If you’re up for renewal you could just roll over onto a floating rate or refix with what the bank offers you but there is another way. Please do NOT take the first options offered. Get personalised financial advice for your situation.

Through the golden period of low interest rates, it was easy to set and forget, now with finances becoming so tight it’s time to get smart.

Reviewing your financial situation and your home loan may save you thousands on interest. As an example, a 0.75% difference on a $500,000 loan is around $250 a month and $3,000 a year.

What are your options?

There are two main options for you - refinance or refix.


Refinancing means transferring your home loan from one lender to another.

You effectively pay off your existing home loan and taking out a new one with a different lender. Homeowners who choose to refinance usually do this to get a more competitive home loan interest rate, to shorten their loan term and pay back the mortgage sooner, or to access the equity in their property.


Refixing means locking in an interest rate for a new term when an existing fixed rate term expires.

At the end of your fixed rate term, your lender will offer you a new rate. Unless you contact them to request a change you may be locked into a new fixed rate contract. This is your opportunity see if negotiating a better rate is possible.

Traditionally refinancing or refixing was considered when life changes altered a person’s financial circumstances. This could have included:

  • Increased income

  • Selling the property

  • Growing household

  • Reduced childcare costs

  • Renovating.

Now it’s advisable to consider these options if you are just up for renewal as a small difference in interest rates may have a big impact to your wallet.

By getting financial advice you may be able to:

  • Secure a more competitive rate through your mortgage broker negotiating a better rate for you with your lender.

  • Take advantage of another lender’s products or services, which may offer a better rate or greater flexibility than your current home loan provider.

  • Depending on your financial situation, refinancing may allow you to borrow more money. This may be beneficial if you’ve accumulated some higher interest debit or if you’re planning on carrying out renovations.


In most cases there is no cost to engaging Stephen to review your mortgage options in the context of your overall financial situation. Many can talk to it, not many will walk you through it. Contact us today to get expert advice so you can make smart decisions on your finances.