What is the difference between a refix and a refinance?

A refix usually means staying with your current bank and choosing a new rate when a fixed term ends. A refinance usually means replacing the loan with a new one, often with a different lender, which can involve legal work, valuation, and possible break fees if you leave early.

How accurate is this calculator?

It is an educational estimate only. It uses simple interest on your current balance over the remaining fixed months, then subtracts break fee and other switching costs. Real loans amortise, bank break-fee methods differ, and lender policy matters. Treat the output as a starting point, not a quote.

Should I refinance before my fixed term ends?

Sometimes the rate gap is large enough to cover a break fee and switching costs. Sometimes it is not. Ask your current bank for a break-cost quote, then have a licensed mortgage adviser net that against a real offer. Online Home Loans does not advise which path to take.

What costs should I include besides the break fee?

Common extras include legal or conveyancing fees, valuation, discharge fees, and cashback clawback if you leave within a clawback period. Put those in the switching costs field so the net estimate is honest.

Does Online Home Loans give mortgage advice?

No. We are a referral service. We connect you with a licensed New Zealand mortgage adviser who deals with you directly. We do not recommend products, set rates, or arrange lending.

Calculator

Refix vs refinance savings calculator

Wondering whether breaking a fixed rate to chase a sharper quote is worth it? Plug in your balance, remaining term, rates, and costs for a plain-English estimate. Online Home Loans is referral only. We do not give mortgage advice. Outputs are estimates, not quotes.

Savings estimate

Simple interest on your balance over the remaining fixed term, then subtract break fee and switching costs. Conservative and transparent. Not a quote.

Loan balance (NZD)Approximate principal still owing on the fixed portion.Remaining fixed term (months)How many months are left on the current fix.Current fixed rate (% p.a.)New rate quote (% p.a.)A refix offer, or a refinance quote you are comparing.

Break fee

Estimated break fee (NZD)Ask your current bank for a written break-cost quote. Treat it as time-sensitive.

Other switching costs (NZD)Legal or conveyancing, valuation, discharge fees, and any cashback clawback you expect to repay. Use 0 if you are only comparing a same-bank refix with no exit costs.

Results (estimates only)

Interest if you stay: $39,757; Simple interest at 5.89% over 18 months
Interest at new rate: $32,333; Simple interest at 4.79% over the same period
Gross interest difference: $7,425; About $412 per month before costs (+1.10 pts)
Exit and switch costs: $5,000; Break fee $3,500 + other costs $1,500

Net estimate over remaining term

$2,425

On these numbers, the rate gap looks larger than the exit costs over the remaining term. That is only a starting point. Talk to a licensed broker before you act.

How the maths works

Interest if you stay ≈ balance × current rate ÷ 100 × (months ÷ 12)
Interest at the new rate ≈ balance × new rate ÷ 100 × (months ÷ 12)
Gross interest difference = stay interest minus new-rate interest
Net estimate = gross difference - break fee - other switching costs

This ignores principal pay-down, fees built into repayments, tax, and lender policy. Real amortising loans usually show a smaller interest difference than this simple method, so treat the result as conservative for decision-making only when the net figure is clearly positive after honest costs.

When this comparison usually comes up

Kiwis often compare a same-bank lower rate / refix offer with a full refinance when a fix still has months left, or when a new quote looks meaningfully sharper. Mid-term moves need a break-fee quote first. Waiting until expiry removes that particular cost, though legal and other switching costs can still apply if you move banks.

What this tool does not do

It does not calculate an official bank break fee.
It does not run a full amortising repayment schedule.
It does not check lending criteria, LVR, or servicing.
It does not recommend refix, refinance, or staying put.

Use it to frame the conversation, then talk to a licensed broker about your actual numbers.

Common questions

What is the difference between a refix and a refinance?: A refix usually means staying with your current bank and choosing a new rate when a fixed term ends. A refinance usually means replacing the loan with a new one, often with a different lender, which can involve legal work, valuation, and possible break fees if you leave early.
How accurate is this calculator?: It is an educational estimate only. It uses simple interest on your current balance over the remaining fixed months, then subtracts break fee and other switching costs. Real loans amortise, bank break-fee methods differ, and lender policy matters. Treat the output as a starting point, not a quote.
Should I refinance before my fixed term ends?: Sometimes the rate gap is large enough to cover a break fee and switching costs. Sometimes it is not. Ask your current bank for a break-cost quote, then have a licensed mortgage adviser net that against a real offer. Online Home Loans does not advise which path to take.
What costs should I include besides the break fee?: Common extras include legal or conveyancing fees, valuation, discharge fees, and cashback clawback if you leave within a clawback period. Put those in the switching costs field so the net estimate is honest.
Does Online Home Loans give mortgage advice?: No. We are a referral service. We connect you with a licensed New Zealand mortgage adviser who deals with you directly. We do not recommend products, set rates, or arrange lending.