Have your financial circumstances recently changed? Are interest rates fluctuating? Or is your fixed-term interest rate ending soon? If you’re among the many New Zealand homeowners in any of these situations, you might consider refinancing your mortgage.
Mortgage refinancing involves taking out a new home loan to repay your original home loan. In many instances, refinancing a mortgage allows homeowners to take advantage of lower interest rates, cash out some of their home’s equity, or even reduce their monthly mortgage repayments to help with the household budget.
Before you start the mortgage refinance process, however, it’s good to understand the benefits and obstacles of refinancing and how the process works. Learn more about refinancing your mortgage below and speak to the team at Max Mortgages today to learn more about the options available to you.
Refinancing a mortgage is not that different from getting a mortgage in the first place. Start by shopping around and comparing lenders, or work with a Mortgage Adviser who will shop around on your behalf and help you make an informed decision.
Compare current market offerings with your existing mortgage to see how it stacks up. If your credit situation has improved since your mortgage was first approved, you may qualify for more favourable terms when you refinance your home loan.
Remember to factor in any extra fees you may be charged—like break fees if you break a fixed-rate loan term early—as these could impact the overall cost of refinancing and offset any savings you may achieve with a home loan refinance.
There are many reasons why homeowners choose to refinance a home loan. Here are some:
Securing a mortgage with a lower interest rate is one of the best reasons to refinance a home loan, as it saves you money over the life of your loan, but there are a few other good reasons as well:
There are several good reasons to refinance, but understanding the pitfalls is just as important. Here are some of the things to think about before you decide to refinance a mortgage:
Refinancing a mortgage is not an easy decision. But having the right knowledge and a Mortgage Adviser like those at Max Mortgages to help guide you through the process means you can make an informed decision that will positively impact your financial future.
At Max Mortgages, we work with a wide range of mortgage lenders across NZ, including all the main banks and many specialist non-bank lenders, to ensure you have the choice and flexibility when refinancing your home loan. Not only does this improve your chances of getting a refinance application approved, but it also suggests you’re much more likely to find a refinance mortgage product that will suit your specific needs and budget.
Moreover, when you partner with us, your financing options are not limited to home loan products. If you don’t want to break your home loan, our Personal Lending Team at Max Loans can also assist with a separate personal loan to help you meet your financial needs and goals.
Often, a personal loan through us can be approved within 24 hours, so it may be more suitable if you need money fast for unexpected expenses, such as urgent house repairs or renovations, medical emergencies, and funerals. In addition, as a personal loan typically has short repayment terms, it may also help you save money on the total interest you will pay over the life of your loan. In fact, instead of rolling debt into their home loan, many of our customers use a personal loan to consolidate debt or make a big purchase and then pay the loan off over a short-term period to save on interest costs. However, just be aware that generally, the minimum repayments will be higher with a personal loan than with a home loan product of a similar amount. This can make a big difference in your decision if your budget has no wiggle room.
Which financing option you choose really depends on your financial situation and needs. To discuss your needs and options, call 0800 ASK MAX (0800 275 629) today!
When you choose to partner with us, you’ll benefit from our industry knowledge and gain access to up-to-date information. This may include the latest mortgage interest rates, application criteria for different lenders, and which home loan products include features most beneficial to your current situation. We will help you understand the pros and cons of refinancing and do the sums to help you evaluate whether refinancing is right for you.
Refinancing your home loan can be hard work – it involves considerable paperwork, and a small mistake could prevent you from getting a mortgage approval. Handing this responsibility over to an experienced Mortgage Adviser is one of the easiest ways to ensure everything is filled out correctly before your refinance application is submitted to a lender. Let us help you with all the paperwork and guide you through the entire process to ensure your transition from your existing mortgage to your new one is hassle-free!
When you arrange your home loan with us, we hope this is the start of a lifetime relationship. We will stay on hand to offer advice and support whenever needed. We will also provide regular reviews of your home loan to help ensure that your loan is still the best fit for you and your unique needs. If you refinance to borrow money for renovations, our insurance advisers at Max Insurances can also help review your house insurance to ensure your coverage is up to date after your renovation.
If you’re looking for advice about mortgage refinancing, bad credit mortgages, or just some general advice about home loans in NZ, please get in touch. Call us on 0800 ASK MAX (0800 275 629) or email us to arrange a free, no-obligation chat.
Refinancing can lower your interest rate or shorten the loan term, potentially reducing the total interest paid over the life of the loan. But remember, every situation is unique. We advise you to get in touch with a Max Mortgages Adviser to help you decide whether refinancing your mortgage is the best option for you.
Yes, refinancing usually involves application fees, legal fees, and possibly break fees if you are switching before the end of a fixed-term loan. While there may be some fees involved, these costs can often be outweighed by the long-term savings you could achieve through refinancing. Think of it as a short-term investment for potential long-term financial benefits. In addition, your Mortgage Adviser might also be able to secure a cash offering from the Bank which will help offset any refinancing costs. We're here to help you navigate these details to ensure it's worth your while.
The refinancing process typically takes between 2 to 4 weeks, depending on the lender and the complexity of your application.
Yes, you can still refinance with bad credit, but your options may be limited, and you might not qualify for the best rates. Speaking with one of our Mortgage Advisers can help identify the best approach.
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