The questions and original answers

Yes — speak to your bank now, rather than waiting until your fixed rate expires. With your home loan ending in two months, you have time to understand your options, compare repayments and ask for help before your budget comes under pressure.

In New Zealand, you don't have to wait until you miss a payment to tell your lender you're worried about affordability. Being proactive gives you the best chance of finding a workable arrangement.

1. What to ask your bank

I'd start with these five questions.

• “What will my repayments be when my fixed rate expires?” Ask for estimates at several possible interest rates, including one that would make your budget uncomfortable. Check whether the new repayments start immediately after the fixed term ends.
• “What rates and fixed-term options can you offer me?” Ask about fixing for one, two or more years, as well as floating rates. Compare the rate, fees, flexibility and potential cost of breaking a fixed term early.
• “Can you offer me a lower-cost option or a better deal?” Ask whether you qualify for a retention rate, a different loan structure or any available cashback or fee concessions. You can also compare offers from other lenders.
• “Can we restructure my loan to make the repayments more manageable?” Ask about splitting your mortgage across different fixed terms, changing the repayment frequency or extending the loan term if appropriate. Extending the term can lower regular repayments but usually increases the total interest you pay.
• “If the repayments are still too high, what hardship options are available?” Explain your concerns now and ask what temporary support or formal hardship arrangements you may qualify for.

You don't need to have all the answers before contacting the bank. Tell them plainly that you're concerned the new repayments may not be affordable and want to plan ahead.

2. Work out what you can actually afford

Before agreeing to a new rate, build a budget using your take-home income and essential expenses. Don't choose a loan just because the bank offers it or because the first repayment estimate looks manageable.

A simple way to prepare is to work out:

• Your current mortgage repayment.
• The maximum repayment you could comfortably manage each week or fortnight.
• What remains after food, power, rates, insurance, transport, childcare and other debt repayments.
• A buffer for unexpected costs or changes in income.

Ask the bank to show you the effect of a 1 percentage-point increase in the interest rate as well. Sorted recommends testing this sort of scenario when comparing mortgages. How to find a good deal on your mortgage » Sorted

3. Understand the options if the numbers don't work

Option	Potential benefit	What to watch out for
Refix at a competitive rate	May reduce repayments compared with a higher offer	Rates can change before you lock one in
Split your loan across fixed terms	Spreads out the timing of future refixes	Some of your loan may still face changing rates
Extend the loan term	Usually reduces regular repayments	You will generally pay more interest over time
Apply for hardship assistance	May provide temporary repayment relief	Eligibility applies, and relief can increase the total amount owed

New Zealand's Consumer Protection guidance recommends contacting your lender early if you know you may struggle with repayments. Formal hardship assistance is generally intended for situations involving an unforeseen change, such as job loss, illness or a relationship breakdown, so a looming refix on its own may not qualify. You can still ask your bank what other support is available. Mortgages and home loansPayment problemsHardship applications

4. A message you can send your bank

Email

Subject
: Upcoming mortgage refix — repayment affordability

Hi,

My fixed home loan rate expires in approximately two months, and I'm concerned that my repayments may become difficult to manage when the loan refixes.

I'd like to discuss my options before the expiry date. Could you please provide:

• Estimated repayments at the available interest rates and fixed terms.
• Any competitive refix or existing-customer rates available to me.
• Options for restructuring the loan to make repayments more manageable.
• Any fees or longer-term costs associated with changing the loan term or structure.
• What support may be available if the repayments are still unaffordable.

I'd appreciate the opportunity to review the options and understand the likely repayments before making a decision.

Kind regards

5. If you need extra support

You can also contact MoneyTalks, New Zealand's free financial helpline. A financial mentor can help you work out a realistic budget and, if needed, communicate with your lender. Payment problems

My recommendation: Contact your bank this week. You have two months to explore the options, and you don't need to wait until you're in financial difficulty to start the conversation.

If you'd like, I can help you estimate your new mortgage repayments and see how much room you have in your budget.

The most useful starting point is: What is your approximate remaining mortgage balance, and what is your current interest rate? If you know how many years are left on the overall loan, include that too. I can use those figures to illustrate some possible repayment scenarios.