By Kim Lyons - Mortgage Broker - Financial Adviser
Refinancing your home loan might sound like a big step, but for many Kiwis, it’s a smart move that can save money, reduce stress, and open up new financial opportunities. Whether you're with a bank or a non-bank lender, here are the most common reasons New Zealanders choose to refinance their mortgage.
This is the number one reason people refinance. If interest rates have dropped since you locked in your mortgage, or if your fixed term is coming up for renewal, refinancing can help you pay less interest and reduce your monthly repayments. Over time, this can mean tens of thousands of dollars in savings.
Life happens – maybe your income has changed, you're starting a family, or you just want a bit more breathing room each month. Refinancing to extend your loan term or move to a more affordable structure can help ease cash flow pressure.
If your property’s value has gone up, you may be able to release some of that equity. This extra cash can be used for:
Many clients refinance to change from:
Every situation is different, and a loan structure that worked two years ago may not be the best fit today.
If you’ve built up high-interest debt – like credit cards, personal loans, or hire purchases – rolling it into your home loan (at a much lower rate) can simplify repayments and potentially save you a significant amount in interest.
Life changes. If you're separating from a partner or ending a business relationship, refinancing can help remove someone from the mortgage and title – and ensure the home loan is set up correctly going forward.
Some Kiwis refinance to shorten their loan term and become mortgage-free sooner. Moving from a 30-year term to a 15- or 20-year loan means higher repayments but less interest paid over time – and the satisfaction of owning your home outright, faster.
Sometimes it's about getting a better deal, more flexible features, or working with a lender who understands your situation – especially if you're self-employed or don’t fit the big banks' boxes. Non-bank lenders often offer more customised solutions, and refinancing can be your ticket to better service and peace of mind.
Refinancing isn’t just about the rate – it’s about making sure your home loan suits your lifestyle, your goals, and your future.
Many...many years ago you helped me and my husband get our first mortgage for a house in Auckland through a Bank.
We have stuck with the Bank all of these years but the lovely bank manager we had got made redundant and the local branch shut.
Things have now become much harder as we are just dealing with a random stranger on a phone line now, and the service levels are not great
You helped us to finance our last house, and you were very helpful and easy to deal with.
You have assisted us in the past when we have needed some outside of the box funding with our previous business
If you're wondering whether refinancing could benefit you, let’s have a chat. We’ll take care of the paperwork, negotiate with lenders on your behalf, and help you make a confident, informed decision.
Book a free review with us – Kim Lyons, Natalie Siebrits, Danielle Happy or Murray Moore – and let’s see what’s possible.
Ph: 0800 699436 www.firstratemortgages.co.nz or www.nonbank.co.nz
