.png)
Understanding What Mortgage Rates Are Doing In 2025
The current mortgage landscape presents some compelling opportunities. As of April 2025, we’re seeing competitive fixed-term rates starting from 4.99% for 2-year’s across the major banks.
This represents a notable improvement from previous years and could mean substantial savings for many homeowners.
What makes the New Zealand mortgage market unique is our preference for shorter fixed-term mortgages, typically ranging from one to five years. This differs significantly from markets like the United States, where 30-year fixed terms are common. This structure creates more frequent opportunities for refinancing and rate optimisation.
Key Refinancing Benefits You Should Know
Let me share a recent client success story. Tony and Karen, an Auckland couple, were paying 7.5% on their $500,000 mortgage. After reviewing their situation, we secured a new rate of 4.99% on a 2-year fixed term. This adjustment reduced their monthly payments by $786, leading to potential savings of approximately $235,839 over their remaining 25-year term.
Beyond interest rate savings, refinancing can offer:
Why Partner with a Mortgage Adviser When it Comes to Refinancing?
The mortgage market’s complexity often surprises even experienced homeowners.
Recent research by Financial Advice New Zealand (FANZ) reveals an impressive 87% of those who reviewed their mortgage with an adviser’s help believe the changes will save them money.
Here’s why:
Market Access: We maintain relationships with multiple lenders and in some cases have access to rates and products not directly available to consumers. Currently, we work with 20+ lenders, each offering unique products suited for different situations.
Personalised Strategy: Every homeowner’s situation is unique. Recently, we worked with a client approaching retirement who wanted to refinance to a shorter term. We structured a solution that slightly increased their monthly payments but will save them around $75,000 in interest over the life of the loan.
Process Management: We handle the paperwork, negotiations, and communications with lenders. This typically saves our clients around 15-20 hours of personal time during the refinancing process.
Making the Move: Next Steps
If you’re considering refinancing, here’s what you should know about the current market:
The best time to review your mortgage is now, especially if:
Would you like to understand how much you could save through refinancing?
Let’s connect. Feel free to schedule a no-obligation review of your current mortgage structure.