Question 1

How does the break-even rate work?

Accepted Answer

The break-even rate is the constant average rate after the shorter fix expires at which both options have the same estimated interest cost over the longer fixed-term period. Below it, the shorter option has the lower estimated interest cost; above it, the longer option does.

Question 2

Should I fix my mortgage short or long in NZ?

Accepted Answer

It depends on the rate gap between short and long terms, and where you think rates are heading. A larger gap means you need rates to rise significantly for the long fix to win. Use the MyRefix calculator to find your specific break-even point.

Question 3

What's the difference between Special and Standard mortgage rates?

Accepted Answer

Special rates are lower but typically require 20%+ equity and may require salary credit or other conditions. Standard rates are base advertised rates; lending criteria still apply and a low-equity margin may be added.

Question 4

How often do NZ mortgage rates change?

Accepted Answer

NZ banks can change rates at any time. The Reserve Bank currently reviews the Official Cash Rate eight times per year, while fixed mortgage pricing also responds to wholesale rates, funding costs and competition.

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