Refixing
Refixing means staying with your current lender and choosing a new fixed-rate period when your existing fixed term ends.
Your mortgage does not move to another bank, and in most cases there is no legal transfer of the property security.
The basics
What Is Mortgage Refinancing?
Refinancing means moving your mortgage from your current lender to a new lender.
Mortgage refinancing usually involves replacing your existing home loan with a new loan from another bank or lender. The new lender pays out the old mortgage, takes security over the property, and becomes the lender you repay.
Because you are applying with a new lender, refinancing usually involves a new loan application. The lender will assess your income, expenses, debts, credit history, account conduct, and the property, even if you have a strong repayment history with your current bank.
Some people use the word “refinancing” for any mortgage change. On this page:
- Refixing means choosing a new fixed rate with your existing lender
- Restructuring means adjusting the way your loan is set up
- Refinancing means moving the mortgage to a new lender
Reasons to move
Why Might I Refinance My Mortgage?
Refinancing should be about more than a lower headline rate.
A lower rate can matter, but it is only one part of the decision. The reason for moving banks should still make sense once you factor in the costs, loan structure, lender criteria, and how long you expect to keep the new loan.
You may look at refinancing if you want to:
- Compare your current lender's offer with other options available
- Access loan features your current lender does not offer, such as offset or revolving credit
- Review your loan splits, repayment terms, or overall structure
- Borrow against available equity for approved purposes, such as renovations or another property
- Consolidate higher-interest debt into a separate mortgage split
- Move away from poor service or slow credit decisions
- Work with a lender that treats self-employed or variable income differently
- Separate owner-occupied and investment lending more clearly
We help you look at whether moving banks is actually worth exploring, or whether refixing or restructuring with your current lender may be enough.
Three different moves
Is Refinancing Different From Refixing Or Restructuring?
Yes. Refixing, restructuring, and refinancing solve different problems and can involve different costs.
Restructuring
Restructuring means changing the way your existing lending is set up.
This could include splitting the mortgage, moving part of the loan to floating, offset or revolving credit, adjusting repayments, changing repayment frequency, or shortening a loan term.
Some restructure changes may be simple. Others may need lender approval or a new assessment.
Refinancing
Refinancing means moving the mortgage to a new lender.
This usually involves a new application, lender approval, new loan documents, and legal work to transfer the mortgage security.
The right option depends on what you are trying to achieve, what your current lender can offer, and whether the cost and effort of moving banks makes sense.
The maths
How Do I Know If Refinancing Leaves Me Better Off?
You need to compare the full picture, not just the advertised rate.
We look at the potential benefit of the new loan, then compare it with the cost of leaving your current lender and setting up the new lending.
Start with the possible benefit
This may include:
- The estimated interest difference over a comparable period
- Any cash contribution from the new lender
- Any fees the new lender agrees to cover
- Any loan feature that has a practical value, such as offset, revolving credit, or repayment flexibility
Then factor in the possible costs
This may include:
- Fixed-rate break costs
- Cashback repayment to your current lender
- Legal and discharge costs
- Valuation costs
- New lender fees
- Deferred establishment or package fees from your current loan
There is no adviser fee payable by you for our mortgage advice service. If your loan settles, we are paid by the lender you choose.
Once the costs and benefits are clear, we can estimate the break-even point. This is the point where the potential savings or benefits of refinancing outweigh the cost of switching.
If you expect to sell, refinance again, borrow more, or make another major change before that point, refinancing may not produce the result you expected.
Switching costs
What Does It Cost To Refinance A Mortgage?
Refinancing can involve costs from your current lender, the new lender, and the legal transfer process.
The exact cost depends on your loan, lender, fixed-rate terms, ownership structure, property, and whether any extra borrowing is involved.
Fixed-rate break cost
If you repay a fixed loan before the end of the fixed term, your current lender may charge an early repayment or break cost.
This can depend on your loan balance, time left in the fixed period, and market rate movements since the loan was fixed.
The amount may be large, small, or nil. Only your lender can confirm the figure, and it can change. It is important to ask for the amount in writing, including how long the quote is valid for.
Legal and discharge costs
A lawyer usually helps repay the old loan, discharge the current mortgage, and register the new lender’s security over the property.
Your current lender may also charge a discharge fee.
Some lenders may provide a legal transfer service or contribute towards legal costs, but it is important to check what is and is not included. Trusts, guarantors, ownership changes, multiple securities, or linked transactions may fall outside a basic legal package.
Valuation and application costs
The new lender may accept an automated property estimate, or they may require a registered valuation.
A paid valuation may be more likely where the property is unusual, the lending is higher risk, the equity position is tight, or extra borrowing is involved.
Application or loan fees vary by lender. We help check the likely fees before you decide whether to move forward.
Check The Cost Before You Move
Before you refinance, know what switching could actually cost. Call Sarah on 022 305 5696 or send your details. If you have them handy, include your latest loan statement, fixed-rate end dates, current repayment details, and any lender letters you have received. We'll help you understand what costs may apply, what information needs to be checked, and whether refinancing is worth exploring further.
Cashback clawback
Will I Have To Repay My Old Bank's Cashback?
Possibly. Your own loan agreement or cash contribution letter controls the answer.
A lender cash contribution often comes with a period where some or all of the contribution must be repaid if you refinance, sell the property, or repay the loan early.
The timeframe and repayment formula can vary between lenders. Some cashback clawbacks reduce over time, while others may be calculated differently.
Do not assume the full new cashback is a gain
A new lender contribution may help offset genuine switching costs, but part of it may be needed to repay your old bank’s cashback or cover legal and transfer costs.
For example, a $5,000 new contribution is not a $5,000 gain if $3,000 goes back to your old lender and $2,000 is used for transfer costs.
We help you check both sides: what you may receive from the new lender, and what you may need to repay or pay to move.
Compare like with like
Can A Lower Rate Still Cost Me More?
Yes, depending on the loan term, fees, structure, and how the loan is repaid.
A lower rate does not always mean a lower overall cost. One common issue is restarting the mortgage over a longer term.
The minimum repayment may look lower because the debt is spread over more years, but that can increase the total interest paid over time.
For a fair comparison, it is important to compare:
- The same opening loan balance
- The same remaining loan term
- The same repayment frequency
- The same fixed-rate period
- Any introductory rate and what it may revert to
- The same extra repayment assumptions
- All fees, costs, and cash contributions
- The estimated balance at the end of the comparison period
Loan features matter too.
An offset facility can reduce interest if you keep savings in linked accounts. Revolving credit can be useful for disciplined borrowers, but it can also slow repayment if the limit is repeatedly spent.
We compare the loan you are likely to use in real life, not just the advertised rate in isolation.
Equity and consolidation
Can I Refinance To Access Equity Or Consolidate Debt?
Potentially, subject to affordability, loan-to-value ratio, lender policy, and approval.
Some people consider refinancing to borrow extra for renovations, a deposit on another property, large planned costs, or debt consolidation.
The purpose of the extra lending matters. It can affect lender policy, approval requirements, and how the loan should be structured.
Debt consolidation
Consolidating credit cards, personal loans, or other short-term debt into the mortgage may reduce the interest rate and regular repayment.
However, it also turns short-term debt into debt secured against your home. If it is spread across the full mortgage term, the debt may cost more over time even if the interest rate is lower.
For that reason, consolidated debt is often best treated separately rather than hidden inside the main home loan.
We can help look at whether a separate loan split and shorter repayment term may be more suitable for the original debt.
Closing or reducing repaid credit limits may also be part of the lender’s approval requirements.
Renovations or smaller top-ups
If the goal is a renovation or smaller amount of extra lending, a top-up with your current lender may be simpler or more cost-effective than moving the full mortgage.
We can compare a top-up, refinance, or construction and renovation loan option so you can understand which route may suit the work you have planned.
New application
What Will The New Lender Check?
Refinancing is a new mortgage application.
A strong repayment history with your current lender may help, but it does not automatically carry your previous approval across to the new lender.
The new lender may ask for:
- Photo identification and proof of address
- Recent payslips, employment details, or business financial statements
- Bank statements and household spending information
- Current mortgage statements and fixed-rate expiry dates
- Credit card, overdraft, and loan balances and limits
- Evidence for any extra borrowing purpose
- Insurance details
- An automated property estimate or registered valuation
The lender will assess your credit history, account conduct, equity position, income, expenses, and ability to meet repayments under its current criteria.
Your income may also be treated differently from how your current lender assessed it several years ago.
Like-for-like refinancing may be treated differently under Reserve Bank LVR and DTI restrictions when the new loan does not exceed the original loan amount. However, that does not require a lender to approve the application.
Extra borrowing can fall outside a like-for-like refinance and must fit the lender’s current rules.
We help check the likely position before lodging a full application. This can help avoid sending the same file to multiple lenders unnecessarily.
Timing
How Long Does Refinancing Take?
The timing depends on your situation, the lender, the property, and how quickly documents can be provided.
Starting around four to eight weeks before a fixed term ends can give more time to compare options, collect documents, complete lender assessment, and work through the legal transfer process.
A straightforward application may be assessed within several working days, but timing can take longer if the file involves self-employed income, multiple properties, a trust, valuation requirements, missing documents, or extra borrowing.
Approval is only one part of the process. After approval, the new lender issues loan documents, your lawyer completes identity and signing requirements, and both banks coordinate settlement.
Allow time for:
- Comparing the loan and switching costs
- Collecting documents
- New lender assessment
- Valuation, if required
- Legal documents and signing
- Settlement and discharge of the old mortgage
The right timing depends on your current loan, your lender’s offer, the new lender’s process, and your settlement date.
Timing it right
When Is Refinancing The Wrong Move For Me?
Refinancing is not always the right answer.
In some cases, staying with your current lender, refixing, restructuring, or waiting until a fixed term ends may be more appropriate.
Refinancing may not be worth exploring if:
- The break cost outweighs the likely benefit
- Repaying the old cashback cancels out the new contribution
- Your current lender can offer a similar or suitable option
- You would lose a loan feature that is useful to you
- A longer new loan term lowers repayments but increases total interest over time
- Your equity or income does not meet a new lender's criteria
- You expect to sell soon
- The refinance depends on borrowing cash you do not actually need
- The main issue is short-term payment stress that needs a wider review
Do not refinance just to make the next payment feel easier without understanding the longer-term effect.
A longer term may reduce the repayment now, but it can also keep the debt around for longer.
After reviewing the numbers, the next step may be to refinance, stay, refix, restructure, repay a loan split, or wait until the fixed term ends.
Our process
How Does Sarah Compare A Mortgage Refinance?
Refinancing is a big enough decision that it should be reviewed properly before you move banks. Sarah helps you compare your current loan against the new option, understand the costs, and work through the process before anything is submitted.
Check My RefinanceRead The Current Loan
We record every balance, interest rate, fixed-term date, repayment amount, loan feature, and remaining term. Your current loan becomes the baseline for the comparison.
Get The Exit Figures
We help identify the key exit costs, including break costs, cashback repayment, and discharge fees. Where possible, these should come from written lender figures rather than rough estimates.
Compare Multiple Lenders
We compare rate, cash contribution, loan structure, lending criteria, loan features, and approval timing across banks and non-bank lenders. This helps show whether the new option is genuinely worth considering, not just whether the rate looks lower.
Calculate The Break-Even Point
We compare the expected benefit against the likely cost of switching. This helps estimate when the move may start to provide a net benefit, and whether that timing fits your plans.
Prepare The New Application
If refinancing looks worth progressing, we help prepare the application, package the income and property information, and answer the lender's questions. Nothing is submitted to a lender without your approval.
Stay Through Settlement
If the new loan is approved and you decide to proceed, we work with the new lender, your current lender, and your lawyer through to settlement. Once the mortgage transfers, we help confirm the loan splits, repayments, and structure are set up as agreed.
The goal is to make sure you understand the numbers, the process, and the trade-offs before you decide whether changing banks is the right move for you.
Client stories
What Homeowners Say About Working With Sarah
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Bax5 months ago
Sarah is super helpful and easy to work with, she actively communicated and answered all of my silly questions quickly. Highly recommend her for first home buyers and buyers in general. Great to work with and very informed!
Helene McDonagh7 months ago
Sarah was absolutely amazing in guiding us through the process as first home buyers. She truly went above and beyond, taking the time to answer all of our (sometimes silly!) questions and making sure we felt supported every step of the way. She was always available to help, even on weekends, whether by call or text, which made such a stressful process feel so much easier. We would highly recommend Sarah and couldn’t have asked for a better experience.
Toni Tittleton10 months ago
Sarah been amazing to deal with! She has helped my partner and I get into our first home. She answered all our thousands of questions! Which really helped us understand the process :) (thanks Sarah!!)
Rashmika Gajjara year ago
I had the pleasure of working with Sarah as my mortgage advisor for purchasing my first home, and I couldn’t be more grateful for her support throughout the process. From the very beginning, she was extremely helpful and transparent, explaining every detail in a way that made everything clear and easy to understand. I thought it would be a stressful and overwhelming experience but it was smooth and straightforward thanks to her guidance. She made the whole journey feel effortless. I would highly recommend Sarah to anyone looking for a reliable and supportive mortgage advisor.
CourtNZa year ago
Sarah has gone above and beyond for us and has been an amazing support while we were buying our first home! She was always available to answer any of our weird and wonderful questions and was super knowledgeable about all aspects of the process. We cannot thank her or recommend her enough! Thanks Sarah :-)
Poppy Maya year ago
Sarah was awesome to deal with and helped us get into our first home :) She was super flexible with meeting times and uses google meets so that we could take the meeting from anywhere. Sarah is super friendly and no question was a dumb question for her, which made us feel really comfortable. She explained each step of the process really clearly and helped us apply for a home loan with the banks, fix our home loan and will be following us up when its time to re-fix. 10/10!
When Can I Refinance My Mortgage?
You can apply to refinance at any time, subject to a new lender's approval and the terms of your current loan.
If you refinance during a fixed-rate term, your current lender may charge a break cost or require repayment of some or all of a previous cashback contribution. For that reason, many borrowers review refinancing options as they get closer to the end of a fixed term.
Is Refinancing The Same As Refixing?
No. Refixing means choosing a new fixed interest rate and term with your current lender.
Refinancing means replacing your current mortgage with lending from another bank or lender. This usually involves a new application, new loan documents, and legal work to transfer the mortgage security.
Can I Refinance A Fixed-Rate Mortgage?
Yes, you may be able to refinance a fixed-rate mortgage.
However, your current lender may charge a break cost if you repay the fixed loan before the end of the fixed term. You may also need to repay some or all of a previous cashback contribution, depending on the agreement you accepted.
Before making a decision, it is important to get those figures in writing from your current lender.
How Much Equity Do I Need To Refinance?
It depends on the lender, the property, the loan amount, and whether you are borrowing more.
Lenders often assess and price applications differently when the loan is above 80% of the property's value. This is known as a higher LVR, or loan-to-value ratio.
A like-for-like refinance may be treated differently under Reserve Bank LVR rules when the new loan does not exceed the original loan amount. However, the new lender still needs to approve the application and can apply its own equity, affordability, credit, and property criteria.
Will My Current Bank Offer A Better Rate If I Leave?
Possibly. Your current lender may be willing to review its rate or offer when it knows you are comparing other options.
This is not guaranteed, and the outcome can depend on your equity, loan size, repayment history, account conduct, and overall lending position.
We can help compare your current lender's written offer against other options that may be available, so you can see the difference before deciding what to do.
Can You Find Me My Ideal Mortgage Rate In New Zealand?
No one can guarantee the ideal or lowest mortgage rate for every borrower.
Mortgage rates can depend on your equity, loan size, income, property type, loan purpose, fixed term, lender criteria, and the structure of the overall application.
We compare available options across multiple lenders and explain how the rate, fees, loan features, approval requirements, and structure compare. The goal is to help you understand the full lending option, not just the headline rate.
Does Refinancing Hurt My Credit Score?
Refinancing usually involves a new loan application, and the new lender may complete a credit enquiry.
One credit enquiry is not usually the main issue, but several applications over a short period can affect how your credit file looks to lenders.
This is why we review the likely lender fit before submitting an application, rather than sending the same file to multiple lenders unnecessarily.
Can I Refinance If I'm Self-Employed?
Yes, self-employed borrowers can apply to refinance.
The new lender may ask for business financial statements, tax returns, recent accounts, bank statements, and details of your income structure.
Different lenders can treat self-employed income differently, including retained earnings, shareholder salaries, variable income, and shorter trading histories. We help check which lender criteria may fit your position before lodging an application.
Can I Refinance To Another Bank And Keep My Accounts?
In many cases, yes. You may be able to keep everyday transaction accounts with your current bank even if your mortgage moves elsewhere.
However, some lenders may include salary credit, transaction banking, or account setup requirements as part of their pricing, cashback, or lending terms.
It is important to read the lender's offer and conditions before agreeing.
Who Handles The Legal Work?
A lawyer, or an approved lender transfer service, usually handles the mortgage discharge and new registration.
Some simple refinances may qualify for a bank-funded or lender-supported legal transfer package. More complex situations, such as trusts, guarantors, ownership changes, multiple properties, or security changes, may require your own lawyer.
We help you understand what legal process may apply before you move forward.
Can I Refinance Without Increasing My Loan?
Yes. This is often called a like-for-like refinance.
It means the new loan is replacing the existing loan, without increasing the overall lending amount.
Even with a like-for-like refinance, the new lender still needs to approve the application. It can still be declined if the lender's affordability, income, credit, property, or policy requirements are not met.
Does It Cost To Use A Mortgage Adviser?
There is no adviser fee payable by you for our mortgage advice service.
If your loan settles, we are paid by the lender you choose. This does not get added to your loan as a separate adviser fee.
How we are paid, including any lender commissions, is explained clearly in our Disclosure Statement.
Next step
Find Out If Moving Banks Is Worth The Paperwork
Changing banks can make sense in some situations, but it is worth checking the full picture before starting the process.
We can help compare your current loan, your current lender’s position, and other lending options that may be available. This includes looking at possible switching costs, cashback, loan features, approval requirements, and timing.
There is no adviser fee payable by you for our mortgage advice service. If your loan settles, we are paid by the lender you choose.
Our advice is based on your loan, your structure, your goals, and your situation, not just the rate on the page.