You know, that moment when your fixed rate is about to end… it sneaks up on you.
One day the email lands or the letter arrives from the bank. Your fixed term finishes on this date. Suddenly the steady repayments you’ve had for one year or two years start feeling less certain. Everything has been predictable. Now it might change.
I’ve sat with people right as they open that message. Some go quiet. Others give a small laugh and say here we go again. It’s not usually panic. Just a quiet unease that sits there.
You read the new rates the bank offers. Sometimes it’s welcome news. The rate looks lower than what you’ve been paying. Your shoulders drop a little. You feel some relief. Other times it’s the opposite. The rate is higher. You do the quick math in your head. Another fifty dollars a month. Eighty. Maybe a hundred or more. Then you think about the power bill that keeps rising or groceries or whatever else already pulls at the budget. It adds up fast.
It feels so personal. One person might shrug and say we’ll manage. Another sits staring at the screen like the numbers have let them down somehow.
The questions come quick after that.
What if I fix for one year and rates drop further. What if I lock in longer and they rise again. Floating sounds risky with no limit on how high it could go. But fixing feels like committing to something that might end up costing more.
I’ve seen people freeze over it. Not because the math is hard. They just hate the idea of choosing wrong.
There is no guaranteed perfect choice. Some split the loan. Fix half for certainty. Float half to catch any drops. That helps some sleep better. Others pick the option that feels least bad and move forward.
Most people refix in the end. They prefer knowing roughly what will come out of the account each fortnight. Floating feels too open when you have kids or the mortgage already takes a big slice of the pay.
The process itself is usually straightforward. You can often lock a new rate early. Maybe thirty days or sixty days before the end depending on the bank. If you do nothing it rolls to floating automatically. That moves with whatever happens next. But most choose to refix because certainty matters when life is busy.
It depends on where rates are sitting and what your own life looks like.
Right now rates feel lower than a couple of years back. Shorter fixes like one year sit around four point four nine percent from most banks. Two years closer to four point six nine or so.
Floating is higher around five point eight or more. That’s easier than when things were up near seven percent. But rates can shift. They have before.
You weigh your own circumstances. Job steady. Planning to stay in Christchurch for years. Kids school fees coming. Those details matter more than trying to guess the absolute best rate.
Some worry about breaking the fixed term early if rates fall further. Others think about the break fees if they want to switch lenders later. It all adds layers.
I remember one person who came in feeling almost anxious. Not dramatic worry. Just that steady hum. They had fixed long last time thinking rates would stay high. Now rates are lower and they wonder if they should have waited. Or fixed short. It’s normal to second guess.
Another time a family sat down relieved. Their rate was dropping a bit. The new offer meant less going out each month. They could put that toward savings or the kids or just breathing easier.
It varies so much.
The bank usually sends reminders a few weeks out. Sometimes more. They offer their rates. You can accept one. Or shop around if you want. Switching lenders at refix time can sometimes get better terms but it means paperwork and possibly fees.
Most stick with their current bank for simplicity. Refixing doesn’t usually cost anything extra.
No valuation needed most times. Just a quick decision.
But the feeling. That’s the part that lingers.
You sit with the numbers. Think about your budget. Can you handle a rise if things change. Do you value the predictability more than the chance to save a little if rates fall.
It’s okay to feel unsettled. This is your biggest bill usually. Your home. Your family’s stability. Some people jot down pros and cons. Stability versus flexibility. Short term versus long. They talk it over with their partner or a friend.
Others just go with what feels right in the moment. They’ve learned there is no crystal ball. In the end a lot comes down to what lets you sleep at night. Knowing the payment won’t jump wildly. Or having room to adjust if things improve.
If you’re in that spot right now it’s normal to feel the swirl. The low hum of what ifs.
Maybe write down what worries you most. The extra cost. The missed saving. The uncertainty.
We could sit down and look at your actual numbers sometime. See the real options. Talk through what’s happening in your life. No rush. No pressure.
Sometimes putting it into words makes the whole thing settle a little.