Why refinance your home loan?
Explore the common reasons many Kiwis look at reviewing their mortgage.
Refinancing
Make your home loan work harder for your lifestyle. Whether you want to secure a competitive rate, simplify your repayments, consolidate debt or unlock equity, we can help you explore if refinancing is right for you.
It is natural to look closely at your mortgage when interest rates shift or your lifestyle changes, and a regular home loan check helps you stay in control. Whether your fixed rate is rolling over or your household priorities have evolved, reviewing your setup ensures your borrowing continues to support your everyday life.
When exploring a refinance, the focus is making sure the long term savings and lifestyle benefits clearly outweigh any transition costs. We can compare options across our panel of lenders and run the numbers with you so you can decide what makes practical sense for your household.
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Getting a better rate
Securing a lower interest rate can trim your ongoing repayments and reduce the total interest you pay over the life of your mortgage. If your goal is getting a better rate, we can compare what you are paying now against competitive options from our panel of lenders to see whether switching makes practical sense for your budget.
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Unlocking built up equity
If your home has increased in value or you have paid down a chunk of your principal, you likely have usable equity sitting idle. Refinancing lets you tap into this value to fund other life plans without selling your home. Homeowners commonly use their equity to fund renovations, purchase an investment property or cover a major life project.
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Debt consolidation
Managing multiple payments across credit cards, store cards and personal loans can chew into your monthly income. Through debt consolidation, you can roll those balances into your home loan to bring everything into one lower interest repayment, freeing up everyday cash flow while keeping your budget manageable.
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Funding home renovations
Whether you want to upgrade the kitchen, add a bedroom for a growing family or revamp your outdoor living, refinancing lets you borrow against your property to cover the build. We can arrange the funds as a lump sum or set up a revolving credit facility so you only pay interest on what you draw down during the work.
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Removing low equity margins
If you purchased your house with less than a 20% deposit, your lender probably added a low equity margin or fee to your loan. Once your property value rises or your balance drops enough to give you 20% equity, refinancing to a new lender removes that extra cost and lowers your ongoing interest rate.
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Accessing useful loan features
Not every bank offers the same tools. If your current lender does not provide multiple offset accounts, flexible redraw facilities or split loan structures, switching to a new lender that does can help you link your everyday savings and shave years off your mortgage.
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Managing relationship or property changes
When life changes, your mortgage setup often needs to change too. Whether you are buying out a partner, dividing relationship property or separating personal home lending from your business finances, refinancing provides a clean break and establishes new lending in your name alone.
Things to consider when refinancing.
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Fixed rate break fees
If you decide to break a fixed rate contract before the term wraps up, your current bank may charge an early repayment fee. We can ask your bank for the exact break cost upfront to make sure your interest savings easily justify making the move.
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Legal and conveyancing costs
Because refinancing means moving to a new lender, a solicitor needs to discharge your existing mortgage from your property title and register the new one. Competing lenders frequently offer upfront cash contributions to help cover these legal expenses.
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Bank cash contribution clawbacks
If your current bank gave you a cash contribution when you took out your mortgage, it usually comes with a three year retention period. If you switch lenders before those three years are up, they might ask for some of that money back. We can check your dates and calculate whether a new lender cash offer will offset the clawback.
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Having enough usable equity
If you are refinancing to fund renovations or invest, you need to leave an equity cushion in your property. Most lenders require you to keep a 20% equity buffer to secure standard lending terms and avoid low equity margins. We can run the numbers on your property value and mortgage balance first so you know exactly what is available to borrow.
Compare your home loan options
Different home loans come with different fees, features and interest rates. Run the numbers below to see how your current mortgage compares against another option.
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