Break Fee Estimator
Frequently asked questions
How is a mortgage break fee calculated in New Zealand?
NZ mortgage break fees are calculated using the difference between the wholesale swap rate when you fixed and the current wholesale rate for the equivalent remaining term, multiplied by your outstanding balance and time remaining. If current wholesale rates are lower than when you fixed, you will typically pay a break fee. Your lender uses their own methodology — always get an exact quote before deciding.
When is it worth paying a break fee to switch mortgage rates?
Breaking a fixed mortgage is worth considering if the interest saving from a lower new rate recovers the break fee within a reasonable period. For example, if breaking and refixing saves $5,000 per year and the break fee is $8,000, you recover the cost in under two years. Use this tool alongside the Refix Comparison Tool to model the full economics.
Where can I find current wholesale swap rates in NZ?
Wholesale swap rates change daily. You can find current NZ swap rates on the RBNZ website (rbnz.govt.nz) or financial data providers like interest.co.nz. Your bank can also tell you the wholesale rate that applied when you fixed — this is needed for an accurate estimate.
Can a mortgage break fee be zero in NZ?
Yes. If wholesale interest rates have risen since you fixed, the bank has not suffered a loss from you breaking early — in this scenario, your break fee is typically $0 (or a small admin fee). This has been common during periods of rising rates.