This guide is designed to be your simple, step-by-step roadmap to refinancing your home loan in New Zealand. We’ll walk you through how to know if refinancing is right for you, what the process involves, and how you can save money and achieve your financial goals.
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Why You Might Consider Refinancing
Refinancing isn’t about ditching your current bank for no reason. It’s about ensuring your mortgage works for you. Here are some of the most common reasons Kiwis refinance:
Get a Better Interest Rate
A small drop in your interest rate can translate to massive savings over the life of your loan. This is the most common reason people refinance.
Access Your Home’s Equity
As you pay down your loan and your property value increases, you build up equity. Refinancing can allow you to borrow against that equity to pay for things like major renovations, a new car, or an investment property.
Consolidate Debt
If you have high-interest debt like credit card balances or personal loans, you may be able to roll them into your mortgage at a much lower interest rate, simplifying your payments and saving you money.
The Refinancing Process
Thinking about refinancing can feel daunting, but it’s a straightforward process when you know the steps.
Step 1: Assess Your Current Loan
Start by understanding your current mortgage. What is your interest rate? When does your fixed term end? Are there any break fees? We can help you get a clear picture of what you’re working with.
Step 2: Compare Your Options
This is where the real savings happen. By comparing rates, features, and cash contributions from a wide range of lenders, we can find the best loan for your specific situation.
Step 3: The Final Application
Once we’ve found the perfect new loan, we’ll handle all the paperwork and manage the application process for you, making sure it’s as smooth and stress-free as possible.
The Switch
After your new loan is approved, the final steps are all about the move.
Step 4: Finalise the Paperwork
Your lawyer will manage the legal side of things, preparing the documents to transfer your mortgage from your old bank to the new one.
Step 5: Settlement
On settlement day, your new bank will pay off your old loan. You will then have a single, streamlined mortgage with your new lender. Congratulations, you’ve refinanced!
Let an Expert Guide You
This guide is a great start, but every home loan is unique. The best way to ensure you’re getting the most out of your mortgage is with a specialist on your side. We’ll handle the entire process, find the best loan for your situation, and be your trusted adviser every step of the way.
Ready to see how much you could save?