Fixed mortgage rates are down — now’s the time to look ahead
Mortgage rates have been steadily falling over the past year, and we’re now nearing the bottom of the cycle. While the Reserve Bank is expected to cut the OCR further, most fixed mortgage rates already price in those future cuts.
Right now, most banks are offering fixed rates under 5% for 1–3 year terms. And while there may still be some small reductions ahead, the room for rates to fall meaningfully from here is limited. In fact, current rates are already sitting below the long-run average, which is around 6.4%.
So what does that mean if you're due to refix or refinance?
Now is the time to think long term
While floating or short-term rates might look tempting, fixing for longer can provide valuable peace of mind-especially in a rising or uncertain economic environment.
But it’s not just about choosing a rate. It’s about choosing the right structure and the right lender to support your broader financial and property goals.
Your mortgage should match your plans
Fixing for longer periods is a big commitment. You’re not just locking in a rate-you’re locking in a lender, loan structure, and specific product features. That has real consequences if you’re planning to:
Buy an investment property
Renovate or add value to your home
Access top-up lending or restructure repayments
Refinance or switch banks in the future
Not all lenders offer the same flexibility when it comes to additional borrowing, early repayment options, or supporting future lending. And if you're not with the right bank, your options might be limited-or come at a cost.
Breaking a mortgage early can cost you thousands
If your situation changes and you need to exit a fixed mortgage early, whether it’s to sell, refinance, or top-up. you could face significant break fees. That’s why getting the structure right from the start is critical.
The right advice = smarter decisions, fewer regrets.
At Colab, we help you design a mortgage strategy tailored to where you are now-and where you want to go.