Nail your mortgage refix and score the best deal

Refixing your mortgage doesn’t have to feel like walking through a financial minefield; it’s simply about knowing what to look for and asking the right questions. With interest rates easing but still hovering in unpredictable territory, now is the moment for homeowners to take stock: compare offers, negotiate hard, and choose a term that aligns with both their budget and long-term plans.

Whether you’re chasing the sharpest rate, balancing flexibility with certainty, or deciding if a one-year, two-year or longer fix best fits your future, a smart, well-informed approach can save you thousands and give you the confidence that you’ve made the right call.

Right now, nearly half of all mortgage holders are due to refix in the next six months. Vega CEO Harry Ferreira says that number is particularly high because people have been fixing for much shorter terms.

“Especially during a period of sustained interest rate cuts.”

But even though those terms are short, he says you should still be thinking about your next move 9 to 12 weeks out from a refix.

“With that in mind, I'd highly suggest using a broker too. Because when you use a bank, you're getting that bank's credit posture and its strategic pricing, but when you have a broker, they look across the full spectrum of all funders.”

HOW CAN A BROKER GET THE BEST DEAL POSSIBLE?

Ferreira says there are a number of avenues that can be explored outside of main banking lenders.

“That means second tier lenders, and the reason why I like our brokers looking at them is because you may get a better rate at a main bank, but the structure of how you repay the loan with a second tier lender could be far more advanced.”

He says brokers are across those details as well as being directly connected to lender portals and their pricing matrix.

“They’re also connected directly to the Business Development Managers. They can pick up the phone and have a much more direct and frank conversation with the pricing team than a normal person could going into a branch or calling a contact centre.”

“Banks are processing hundreds of applications per day, and without that connection it’s impossible for them to properly understand your needs.”

WHAT IF I DON’T WANT TO USE A BROKER?

Ferreira says someone who doesn’t want to use a broker should understand the whole market.

“That means understanding the best deal that your bank can offer, and making sure you take that deal and shop that around the other banks.”

“That does take a bit more time, but it can often save you thousands if not tens of thousands of dollars over a five-year period.”

Ferreira says what’s most important is also to remember that the best deal isn’t necessarily always the lowest rate.

WHAT IS THE BEST DEAL?

Ferreira says a one size fits all isn't the best solution, and accepting just the lowest rate or the best term won’t necessarily suit a lot of lifestyle factors.

“Some people get bonuses towards the end of the year, some people are selling and buying investment properties or businesses, and some come across a windfall to pay off a lump sum, but that can come with an extra cost.”

“What could work is putting a third of your mortgage on a three-year term, a third on a one-year term and another third on a six-month term so you’re able to easily make a lump sum payment in the shorter term without any fees.”

However, those who are thinking of selling in the near future will see the benefit in structuring their entire mortgage across shorter terms.

“They may do only six months or one year.”

“If you structure everything on a longer term then you've got an early repayment cost coming if you're going to sell within the year, or if you put it on one year, and you've got a lump sum coming in six months' time then you can only pay 5% without extra fees. So, it’s all about having that conversation with your broker and doing it early.”

WHAT COULD THAT LOOK LIKE?

Ferreira says he likes to think of his mortgage as a series of buckets.

“I’ve always had four buckets. So, I might have a portion on two years, a portion on one year and a portion on six months. But I always have a fourth portion on a variable interest rate.”

“This might be as little as $25,000 because over a 12-month period I might want to pay that off early and it won’t come as any extra cost no matter when I make the payment.”

His argument is that structure is far more important than the interest rate itself.

“Because you could go for a two-year period on 4.49% or you could have a variable rate, a six-month rate, a one year and a two-year rate, and your total cost over that period may actually end up being less than the 4.49%.”

WOULD A SWEETENER GET ME A BETTER DEAL?

Ferreira says the lending space is competitive, and most will offer some form of sweetener to get you on board and ultimately save you cash.

But while it can come as a welcome addition to any refix, he says treat the sugar rush with caution.

“In some cases, a bank may lend you $2 million and give you a $20,000 lump sum, but then they’ll look to lock you in for a number of years.”

“If you break that term then you have to pay that back, even if you’re three years into it.”

Ferreira says because of that he doesn’t call them ‘cashback offers’; he calls them ‘incentive payments’ or ‘retention payments.’

“They’re payments in order to keep you on their books as long as they can, and if they're giving you a lump sum they're looking to keep you on their books as long as they can.”

Refixing your mortgage is ultimately about taking control, not just of your repayments, but of your financial future. By comparing rates, understanding your options, and choosing a term that suits the life you’re living, you put yourself in the driver’s seat.

With a bit of homework and the confidence to negotiate, you can walk away knowing you’ve secured a deal that works for you now and sets you up well for what’s ahead.