Best Mortgage Refinance Rates in New Zealand (2025 Guide)
Why 2025 Is a Prime Year for Refinancing
The Reserve Bank’s surprise cash‑rate cuts and fierce competition among the majors have pushed advertised one‑year special rates below 5 percent for the first time since 2022. If your current fixed term is rolling off at anything north of 6 percent, refinancing could shave hundreds off your monthly repayments.
Latest Refinance Rates by Major Banks
Rates for owner‑occupied, ≥20 % equity loans — updated 18 Apr 2025:
| Bank | 1 yr Special | 2 yr Special | 3 yr Special |
|---|---|---|---|
| ANZ | 4.99 % | 4.99 % | 5.29 % |
| ASB | 4.99 % | 4.99 % | 5.35 % |
| BNZ (Classic) | 5.89 % | 5.69 % | 5.29 % |
| Kiwibank Special | 4.99 % | 4.99 % | 5.59 % |
| TSB Special | 5.19 % | 4.99 % | 5.39 % |
Source: Interest.co.nz; Special rates apply with a minimum of 20% equity and may change without notice.
Should You Refinance? A Quick Rule-of-Thumb
If the new rate is at least 0.75 percentage points lower and you plan to stay in the property for two years or more, refinancing almost always pays for itself, even after break fees and legal costs.
Four-Step Refinance Checklist
- Confirm break fees using your current lender’s quote.
- Get written offers from at least three banks & one broker.
- Run a break-even calculation (rate delta × loan size vs fees).
- Lock in the new rate and schedule settlement.
Costs & Hidden Traps
Watch out for low advertised rates that come with higher solicitor fees or mandatory insurance bundles. Always ask for the all-in effective rate.
Related Posts
- Official Cash Rate Cut to 3.5 % — What It Means for Mortgages
- Buy or Rent in NZ? 2025 Real Estate Affordability Guide
Frequently Asked Questions (FAQ)
- Q. How much equity do I need to access the 4.99 % specials?
A. Most banks require at least 20 % equity, but some allow 10 % with a small margin added. - Q. Will refinancing reset my loan term?
A. Only if you choose to extend it. You can refinance and keep the original amortisation schedule. - Q. Can I refinance while under a fixed term?
A. Yes, but factor in early-repayment (break) fees. Your new lender may offer a cash incentive that offsets the fee.
Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.
All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.
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