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There are several reasons someone might choose to exit a fixed-rate mortgage early, but doing so almost always comes with associated fees.
To begin with, the agreement can only be terminated if the lender agrees, and when they do, they will expect any financial losses on their side to be covered.
Under New Zealand regulations, banks must allow borrowers to break a fixed-rate mortgage. However, they’re restricted to reclaiming only their genuine costs and are not permitted to earn a profit from the process.
When interest rates drop, many homeowners look to escape their higher fixed rate in order to secure a cheaper one.
Still, even in periods of rising rates, there may be valid reasons to end a fixed-rate contract early.
Life changes—such as the need to sell your home unexpectedly due to a separation, a job relocation, or an international move—can make breaking the agreement unavoidable.
A mortgage break-cost calculator can help you estimate the potential charges before you proceed.
The information provided by this calculator is for general guidance only and is not intended to be relied upon as financial advice. The results are estimates based on the details you enter and may not reflect the final terms or outcomes offered by lenders.
The Mortgage Girls make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of this calculator for your particular circumstances. To the maximum extent permitted by New Zealand law, The Mortgage Girls accept no liability for any loss, damage, or costs—whether direct, indirect, consequential, or otherwise—that arise from the use of, or reliance on, this calculator or its results.
We strongly recommend seeking personalised advice from one of our advisers before making any financial decisions.