Mortgage guide · New Zealand
Mortgage Cashback Clawback NZ — Switching Guide
Understand New Zealand mortgage cashback clawbacks, when a bank may request repayment, how to find the applicable period and how to compare refinancing.
Reviewed 26 August 2026
Reviewed by KiwiTools editorial team — NZ mortgage researchers using government and lender-source methodology
General information only, not financial, lending or legal advice. Ask the lender for a current written quote, fee and contract-specific repayment limits.
Key points
Mortgage cashback is conditional
A cash contribution can be subject to repayment when the mortgage is refinanced, discharged or materially changed inside an agreed period.
The signed offer or loan documents determine the clawback amount and method; it is not necessarily the same across lenders.
Include any quoted repayment as a refinancing cost before deciding whether a new cashback improves the deal.
Illustrative cashback clawback methods
Your signed agreement controls. Ask the lender for a written payout figure instead of assuming every cashback reduces monthly.
| Check | $4,000 cashback example | After 18 of 36 months |
|---|---|---|
| Full clawback | $4,000 repayable during period | $4,000 |
| Straight-line pro rata | $4,000 × time remaining | $2,000 |
| Stepped schedule | Fixed bands in agreement | Depends on band |
| Waived/negotiated | Written lender decision | Could be $0–$4,000 |
Cashback is an advance with strings, not free settlement money
A lender may pay several thousand dollars when a mortgage starts or moves. The accompanying agreement can require some or all of it back if the lending leaves during a stated period.
Keep that agreement with the loan documents. The marketing page will not tell you what your signed version requires eighteen months later.
Ask for the payout figure before comparing banks
A $4,000 original cashback might be fully repayable, reduced pro rata or governed by steps. There is no safe national formula. Request a dated written figure from the existing lender.
Add it to legal fees, break charges and discharge costs. A new $5,000 cashback does not create a $5,000 gain when $3,000 must immediately return to the old bank.
Related: refix vs refinance mortgage Related: mortgage break fees
Negotiate the whole switch
A prospective lender may contribute toward legal or clawback costs, and the current lender may improve its retention offer. Neither possibility should be entered as certain until it is written down.
Compare net cash after every condition, then look beyond cash to rates and flexibility. The largest upfront cheque can still fund the more expensive loan.
Frequently asked questions
Do I have to repay mortgage cashback if I switch banks?
You may have to repay some or all if switching triggers the conditions in the signed cash-contribution agreement.
How long is a mortgage cashback clawback period?
It varies. Use the dates and conditions in your own offer rather than assuming a standard period.
Is new bank cashback free money?
No. It is conditional and should be compared with rates, fees, loan features and future repayment obligations.
Should clawback be included in refinance break-even?
Yes. Include the confirmed old cashback repayment as a switching cost and the net eligible new contribution as a benefit.
Put the guide into practice
Continue with related KiwiTools calculators
Test your own numbers, compare scenarios and return to the guide to check assumptions and limitations.