Many people refinance to get a better rate, consolidate debt, renovate or free up equity. If you’re thinking of refinancing, it’s important to weigh up the cost of refinancing against the long term benefits.

Happy couple standing in an empty apartment discussing renovation plans

It's common to start to thinking about refinancing when interest rates or personal circumstances change.

If you’re refinancing for a better home loan, the most important thing to consider is the long term benefits against the actual costs of refinancing.

Many Kiwis are refinancing their home loan for a number of reasons, including to:

  • Consolidate debt
  • Borrow money to renovate or invest
  • Secure a competitive home loan interest rate
  • Move from a fixed home loan rate to a variable home loan rate, or vice versa

Refinancing your mortgage is not an easy decision. I can help you do the sums, taking into account all the costs of mortgage refinancing, to help you determine whether or not refinancing is the right move for you.

We compare and negotiate competitive interest rates.

We have access to NZ's widest panel of banks and lenders.

We can help you tap into your KiwiSaver and HomeStart grant.

We're the largest group of Mortgage Advisers in New Zealand.

Things to consider when refinancing.

  • Check on exit or deferred establishment fees that you will be required to pay when you switch loans.

  • What are the establishment fees on the new loan and are there any deals on at the moment?

  • If you are refinancing to a fixed loan or a honeymoon loan, find out what the repayments will be once the interest rate reverts.

  • If you are refinancing to access equity, make sure that you have done your sums correctly on your needs and that there is enough equity available in your property to go ahead.

Why would I refinance?

The main points you need to consider before refinancing your home loan relate to your motivation.

Want to discuss it further?
  • Getting a better rate

    The loan with the cheapest interest rate is not always the right option, and in some cases may actually cost you more money over the long term. A competitive home loan will offer a combination of competitive rates, low fees and flexibility. Click here to learn more about getting a better rate.

  • Access the equity in your property

    Many homeowners find it difficult and frustrating saving for things like holidays or renovations whilst paying off a mortgage, but it doesn’t have to be. Mortgage refinancing is a common way of accessing the equity you have built up in your existing property. Home equity loans are most commonly offered as a line of credit loan, which allows you to withdraw funds up to a set limit at any time. You may be able to draw down the initial equity loan either as a lump sum or in stages. Generally a line of credit loan is an interest-only loan, and in some cases you may be able to capitalise the interest payments.

  • Debt consolidation

    Struggling to make repayments on high interest debts such as credit cards and personal loans? Debt consolidation can lower your monthly repayments by combining several loans into a single loan, usually your home loan. Click here to learn more about debt consolidation.

  • Borrowing to renovate

    Renovating is a great way of adding value to your home. Depending on the size of your renovation project, you could need anything from a few thousand to hundreds of thousands of dollars. If you already have an existing home loan then I will help you explore a number of competitive refinance options.

  • Refinancing costs

    Refinancing will generally have some entry and exit costs in the start and can range from a few hundred to thousands of dollars, however it may offer you more flexibility and can save you more money in the long run. As a guideline, things that will affect which fees you are charged and how much they are, include: the size of your loan; the point you are at in your loan term; which lender holds your current loan; the type of loan (e.g. fixed vs. variable); and whether you are switching loans or changing lenders completely.

How much could I save by switching loans?

Different loans have different fees, features and repayment options. Use our loan calculator to see how the numbers stack up between two loans.