Refixing a Mortgage Isn’t Just About the Rate, It’s About Strategy

And understandably so, interest rates are front-page news, and they directly affect your household budget. But while the rate itself is important, it is only one part of the picture. 

As a mortgage adviser, I often describe refixing as a chance to reset your lending strategy. It is not just about what the bank is offering, it is about whether that offer fits your current life, future plans, and financial comfort zone. Because your mortgage isn’t just a number on a statement, it is one of the biggest financial tools you have. How you set it up can either support your goals or get in the way of them. 

A couple I recently worked with had a fixed loan coming up for renewal. They were about to lock in the same two-year structure they had had for the last term. But over those two years, life had changed. One of them had reduced their hours at work after having a baby. Their childcare costs had increased. Their income had shifted, and their cash flow looked very different. 

We sat down and took stock, not just of the rate, but of their budget, their stress points, and what they needed over the next couple of years. What they needed most wasn’t just a low rate. It was flexibility and breathing room. We restructured the loan into three, a short fixed (6 months) portion to gain any potential future rate reductions and the opportunity to review the loan again quickly. A longer-term fixed portion (3 years) to obtain the lower rate and repayment amount certainty for the next few years. Lastly, a floating portion to allow for lump-sum repayments when bonuses came in. 

Nothing about this approach was radical. It wasn’t about switching lenders or hunting for headline rates. It was simply about adjusting the structure to reflect their real life. The result was not only manageable, it gave them confidence and control. 

This kind of mortgage review is something I do with clients all the time. It reinforces why a thoughtful refix is not just about where interest rates are headed, it is about how your mortgage works as part of your financial strategy. 

For some people, staying on the same track makes perfect sense. If your income, goals and commitments haven’t changed, a straightforward refix with your current lender might be all that’s needed. But for many, life looks quite different from when they last set up their lending. There might be a new job, a bigger family, an upcoming renovation, or simply tighter household spending. We understand that no two lives are the same and there is no one-size-fits-all setup. 

It’s also worth remembering that banks play a central and valuable role in this process. Mortgage advisers work with them, not against them. Our job is to help clients understand their options, make informed decisions, and tailor the structure of their lending, often with the same lender they’re already with. The goal is to add clarity to the decision-making process and ensure your lending setup is right for you. Advisers know what his happening across the board with all banks and therefore we may offer options that haven't been previously discussed or been offered as an option. 

So if your fixed term is coming to an end, I encourage you to think beyond the rate. Ask yourself: What’s changed? What’s coming up? What kind of flexibility would give you peace of mind? Refixing isn’t just about the number you lock in. It’s about the strategy behind it and that’s something worth getting right. 

Frequently Asked Questions 

What does it mean to “refix” a mortgage? 

Refixing simply means selecting a new fixed interest rate and term once your current fixed-rate period ends with your current bank. It’s an opportunity to review your loan and decide whether to keep the structure the same or make changes based on your current needs. 

Do I have to stay with the same bank when I refix? 

Is it better to fix for one year or five? 

That depends on your financial goals, risk tolerance, and cash flow. A shorter term may offer a lower rate and more flexibility, while a longer term can provide payment certainty. There’s no universally “right” answer, it’s about what works for your situation. 

Can I make extra repayments if I’m on a fixed term? 

Some fixed loans allow a limited amount of extra repayments each year (often between 5–10% of the loan balance) without penalty. If you plan to make lump sum payments, a floating or revolving credit portion of your loan may offer more flexibility. 

What’s the difference between fixed and floating rates? 

A fixed rate stays the same for the term you have chosen, giving you certainty over your repayments. A floating rate can move up or down with market changes but allows you to make extra payments or repay the loan early without break fees. 

What if I want to restructure my loan at the same time I refix? 

That’s a good time to do it. You can often split your loan into different portions (fixed, floating, interest-only), change your repayment frequency, or even alter the loan term. These decisions can have a meaningful impact on how well your loan supports your life. 

Is there a fee to refix my mortgage? 

Generally, no. Refixing with your current lender doesn’t usually involve a cost. However, if you break your fixed term early or refinance to a new lender, there may be break costs or legal fees, which should always be explained up front. 

When should I start thinking about my refix? 

Ideally, you should start reviewing your options two to three months before your fixed term ends. That gives you time to consider different structures, seek advice, and avoid making rushed decisions. 

Lifetime Group Limited is a licensed Financial Advice Provider. For advice specific to your situation, please speak with a licensed financial adviser. You can view our Disclosure Statement here. 

All investments involve risk and are not guaranteed. Any examples or projections are for illustration only and should not be relied on as advice.