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Many Kiwis refinance their home loan for a number of reasons, including to:
Refinancing is where you move from one loan to another, usually with a different rate, features or term. It may be with your current lender or another.
When your adviser negotiates with your current lender to get you on a better deal, that is called repricing. This can be a straightforward process and your interest rate or fees change, but the lender remains the same. If they find you a better deal with a different lender and move you across, it is called refinancing.
Refinancing works by taking out a home loan and paying off your existing loan. To refinance a home loan, you need to apply for a new loan. Once the new loan is approved, you will transfer your debt to the new loan with your newly agreed rate, features and terms.
Refinancing a home loan usually comes with costs associated. The fees and charges you may need to pay include both exit and entry fees, many of which will depend on your specific situation and current lender.
It is important to weigh up the costs with your potential savings over the life of the loan to determine whether refinancing is a good idea for you. Your Loan Market adviser can run these calculations for you.
Refinancing your home loan can offer you more flexibility and save you money over the long term. A number of lenders offer introductory rates and/or cash-back incentives for new customers, or some may waive fees to secure your business.
Finding the right home loan to refinance is a broader picture – the most important thing to consider is the long-term benefits against the actual costs of refinancing. Your Loan Market adviser will guide you through the structure of the loan, features, terms, fees and ongoing rate to determine the right option for you.
Now you can see that not all loans are equal, and there are many considerations when it comes to comparing your current one to others on the market. Whether interest rates are rising, dropping or staying level, remember lenders want your business and there could be attractive options available. If you don’t ask, you don’t get.
Your Loan Market adviser can do the legwork for you. All it takes is a quick chat and your adviser will do the rest.
Your adviser will look at:
Let us know what your goals are and we will connect you with a Loan Market adviser directly.
Find out how much you may be able to borrow to purchase property.
Understand the amount you will need to pay your lender before you apply for a home loan and ensure you can comfortably meet your repayments.
No two loans are the same and there are a number of costs to weigh up. Compare two side by side to see the difference.
Send an email to [email protected] to get in touch.
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Company Number: 4313118 | NZ Financial Services Group Limited (FSP286965)
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
*Your adviser may charge a fee to cover additional time required by their team. Any fees will be discussed with you in advance so you can make an informed decision before proceeding with your application.
