To Break or Not to Break: The $8,000 Question
Are you trapped in a high fixed-rate mortgage while watching interest rates tumble? The financial sting of being locked into rates around 7% until 2028 or 2029 has many Kiwi homeowners questioning if they should break their fixed terms and refix at today's lower rates.
This question doesn't have a simple answer. Breaking a fixed mortgage involves substantial upfront costs—we discuss one client facing an $8,000 break fee—but the long-term savings from dropping to a rate that's 2% lower might outweigh this initial pain. The calculation involves much more than comparing two numbers on a page…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.