An Auckland couple are saving at least $4000 on their annual mortgage repayments after breaking their fixed-term contract early and signing with a new bank.

A mortgage broker says she has been inundated with inquiries from homeowners looking for better mortgage rate deals since the Reserve Bank slashed the official cash rate (OCR) to a record low 1per cent last week.

But a financial columnist is warning those considering breaking their fixed-term contract that bank penalty fees may mean it's not worth it.

Cameron Mackenzie, who works in the shipping and logistics industry, said he and wife Sarah bought their

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