A rough break cost from today’s rates, set against what refixing would save, so you can see whether breaking is worth asking your bank about.
Weigh the cost against a longer fixed term or a switching incentive.Compare switching banks.
An estimate, not your bank’s figure. Banks calculate break costs from wholesale (swap) rates when you fixed and now, on the balance you repay early, and each uses its own formula; the advertised rate stands in for those here. Most allow some extra repayment each year without a break fee. Ask your bank for a break quote before deciding: it is free and changes daily with wholesale rates.
When you fix, the bank funds your loan at a wholesale rate for the same term. If rates fall and you leave early, it has to re-lend that money for less, and the break fee recovers what it loses. If rates have risen, there is usually no break cost beyond an admin fee.
Roughly, the difference between the wholesale rate when you fixed and the wholesale rate now for the time left, on the amount repaid early, over the months remaining, discounted to today. Each bank uses its own formula.
Wait until the fixed term ends, use your bank’s yearly allowance for extra repayments, or split the loan so only part is fixed. When selling and buying, many banks let you carry the loan to the new home.
The break fee usually takes most of what a lower rate would save over the same months. It can pay when you fix for longer than you have left at a low rate, or when a new bank’s cash incentive covers the cost.
Weekly, fortnightly or monthly repayments and the interest over the loan.
An indicative borrowing limit and a readiness check, from your own figures.
Your balance as a price, and homes at it in the suburb you pick.
What a median home costs against local incomes, town by town.
What your KiwiSaver could put toward a deposit.
The steps from saving a deposit to settlement day.
Buying with 5–20% deposit, and what it costs.
What it is, what to bring, and how long it lasts.
What extra repayments or a lump sum save.
Whether moving your mortgage pays, after every cost.
Every lender’s advertised rates, side by side.
Advisers and firms near you.