New BNZ refi tool cuts legal costs amid rising fixed rates
BNZ is targeting refinancing customers with a new offer that strips out legal fees for simple home loan switches, as competition intensifies and fixed mortgage rates edge higher across the major banks.
The bank’s new Home Loan Switch product allows eligible customers refinancing directly to BNZ to avoid hiring their own solicitor, with BNZ handling the legal documentation and, in the process, potentially saving up to $2,500 in conveyancing fees.
BNZ executive customer, product and services, Karna Luke, said, “Switching your home loan to a new bank shouldn’t feel harder than it needs to be,” adding that the product “helps customers save money when refinancing” and “simplifies the process, helping reduce some of the friction and stress.”
Luke said the offering is aimed at relatively straightforward cases. Simple refinancing includes individual or joint borrowers, residential property, or bare land, and up to two securities, with no trusts or companies involved. Customers who want or need legal advice can still appoint their own lawyer, but BNZ’s in‑house process is designed to lower barriers for standard refinances.
BNZ sharpens edge as fixed mortgage rates climb
The launch comes as switching activity remains elevated and headline mortgage rates continue to ratchet higher.
Luke noted that a “record 41% of new mortgages taken in December 2025” were customers moving between lenders, underlining how actively borrowers are shopping around for better deals, sharper service, or more flexible structures.
At the same time, the fixed‑rate landscape is shifting. BNZ has recently lifted longer‑term fixed mortgage rates in response to higher wholesale funding costs, while keeping its six‑month and one‑year specials at comparatively sharp levels.
Rival majors ANZ, ASB, Westpac, and Kiwibank have all increased selected one‑ to five‑year fixed mortgage rates over recent months, citing rising swap rates and more expensive longer‑dated funding, even as the Reserve Bank has kept the official cash rate on hold.
Simpler switching backs push for more competition
Luke said that for many borrowers, BNZ Home Loan Switch will mean “fewer hurdles to jump through, and more money left in their pocket.” He added that “the government and Commerce Commission have a clear goal of improving competition in the sector and making it easier for customers to switch is one way we are supporting that.”
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