Where Refinancing Goes Wrong
Most refinancing mistakes in NZ come down to comparing the wrong things, or comparing them too late. Borrowers often focus on the headline interest rate while missing break fees, clawback exposure, and how the loan structure fits their next 3–5 years.
Leaving it until the last minute is another common trap — waiting until your fixed term is about to end often means defaulting to whatever your current bank offers, rather than genuinely shopping the market.
The Most Common Mistakes
Watch for these when comparing your options.
Comparing rates in isolation
Break fees, clawback and loan structure matter as much as the headline interest rate.
Not shopping around
Skipping other lenders means missing better rates or negotiating leverage with your current bank.
Overlooking associated costs
Application, legal, valuation and break fees all add up beyond the advertised rate.
Leaving it too late
Start researching 3–6 months before your fixed term ends, not in the final weeks.
Not reading the new loan terms
Review the new contract carefully, or with a lawyer, before signing.
Rushed Approach
Considered Approach
Starting your refinance research 3–6 months before your fixed term ends gives you genuine options instead of a last-minute default.
Quick Summary
- Don't compare rates alone — factor in fees, break costs and loan structure.
- Shop around rather than accepting your current bank's rollover offer.
- Start early: 3–6 months before your fixed term ends, not at the last minute.