Reviewing or refinancing.

Optimising your current home loan position.

Staying ahead of the game.

The NZ economy never stands still, so it’s important to review your home loan regularly. You might discover a switch that will save thousands. Here are some tips on what to consider and a summary of how refinancing happens.

Need help with reviewing and refinancing?

Get a mortgage adviser on side to optimise your home loan arrangements.

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Home refinancing FAQs.

If you’re thinking about refinancing your home, you probably have a bunch of questions in mind and will think of more as you consider your options. Everyone’s situation is different, so the best person to help you is a trusted financial adviser or mortgage broker. In the meantime, here are answers to commonly asked questions about refinancing.

It’s when you get a completely new home loan with a new lender and use it to repay your current home loan in full. If you just want to change the way your loan is set up with your current lender, that’s known as restructuring.
Most people refinance because their circumstances have changed or to save money. Or they’ve discovered another lender that offers a better deal.
Most people who refinance do it to save money, despite the costs involved. The savings are typically due to a lower interest rate, a new customer cashback incentive or a home loan set up that works better for them. If your loan balance is now less than 80% of your property’s value, you may want to increase your loan again to create a cash lump sum.
It’s when you get a completely new home loan with a new lender and use it to repay your current home loan in full. If you just want to change the way your loan is set up with your current lender, that’s known as restructuring.
Most people refinance because their circumstances have changed or to save money. Or they’ve discovered another lender that offers a better deal.
Most people who refinance do it to save money, despite the costs involved. The savings are typically due to a lower interest rate, a new customer cashback incentive or a home loan set up that works better for them. If your loan balance is now less than 80% of your property’s value, you may want to increase your loan again to create a cash lump sum.
The cost to refinance with another lender will depend on your situation. If you’re breaking a fixed interest rate agreement you may be charged an early repayment penalty or break fee to cover the lender’s losses. If you accepted a new customer incentive you might have to repay it if the clawback period still applies. You should also allow for your lawyer’s fee, a mortgage discharge fee, a valuation of your property for the new lender and any loan establishment fees they might charge.
The short answer is: when refinancing won’t help you meet your immediate needs or longer term goals. That often means when the refinancing costs outweigh the benefits. If you have one or more loans on a fixed interest rate, chances are you’ll have to pay a break fee. But it could still be worth refinancing with a new lender. A good mortgage adviser can help to clarify the gains.
Many mortgage advisers recommend an annual review. The idea is to check whether your financial situation and goals are still the same, and whether you still have the best interest rates and loan structure for your needs. Even if they’re not ideal, you may just need to restructure your loan with your current lender, rather than refinancing with a new one. The point is, it pays to check regularly and plan ahead.
The cost to refinance with another lender will depend on your situation. If you’re breaking a fixed interest rate agreement you may be charged an early repayment penalty or break fee to cover the lender’s losses. If you accepted a new customer incentive you might have to repay it if the clawback period still applies. You should also allow for your lawyer’s fee, a mortgage discharge fee, a valuation of your property for the new lender and any loan establishment fees they might charge.
The short answer is: when refinancing won’t help you meet your immediate needs or longer term goals. That often means when the refinancing costs outweigh the benefits. If you have one or more loans on a fixed interest rate, chances are you’ll have to pay a break fee. But it could still be worth refinancing with a new lender. A good mortgage adviser can help to clarify the gains.

Many mortgage advisers recommend an annual review. The idea is to check whether your financial situation and goals are still the same, and whether you still have the best interest rates and loan structure for your needs. Even if they’re not ideal, you may just need to restructure your loan with your current lender, rather than refinancing with a new one. The point is, it pays to check regularly and plan ahead.

Essential reading for refinancers.

Reviewing and refinancing is simplified when you do some groundwork before you talk to a lender or mortgage adviser. We’ve covered the basics here, to help you plan and navigate the way forward.

Check out the latest home loan rates.

If you’re thinking of refinancing, our handy rates table makes it easy to compare the latest rates offered by many of New Zealand’s top lenders. But always keep in mind that there’s more to getting the best refinancing arrangement for you than simply finding the lowest rate.

Helpful calculators.

Refinancing your home or a rental property often begins with a review of what you could afford. This helps you get the balance right between repaying your loan quickly and ending up in financial trouble because you over-reached. Our handy calculators make it easy to plan a budget, check your borrowing power and explore the repayments on various loan structures.

Budgeting is the best way to steer your finances, stay in control and prepare for managing your mortgage.
Work out how much you could borrow based on some quick questions about your current financial situation
Get an estimate of what your repayments could be, based on your mortgage amount, term and interest rate.

Visit the Learning Centre.

Before you start talking to lenders or a mortgage adviser, brush up your knowledge about home loan refinancing. Our Learning Centre has informative articles and guides that can help you to understand the options and make good decisions. They’re all written by expert authors and checked by our panel of mortgage advisers.
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