The reasons to refinance your mortgage

Refinancing is defined as the process of replacing an existing mortgage with a new one. This can be with your current bank or you may want to switch to another bank. It is the process of restructuring or reorganizing, your loan to ensure you have the combination of fixed and floating terms that work best for your individual situation. If you are looking for best rates or easy way to pay off your loan, mortgage refinancing can be best option to do. Most of brokers or banks offer special deal for refinancing your loans. It can be good idea to do bit research while choosing best provider. The desire to refinance a home or business loan varies from individual to individual but there are common reasons:

You are wanting to save on interest costs.

If you think your bank is not offering the best deal on interest rates you may what to seeking a lower interest rate with another bank. This will help you pay off your loan sooner if you maintain your current level of repayments.

You want to reduce your fortnightly or monthly installments due to a change in your financial situation.

This provides more money into your household budget, however, the term of the loan will need to be extended. This, however, means your loan will now take longer to pay off and your interest costs will be greater than those of your original loan.

You want a shorter loan term.

This is known as restructuring and once set up allows you to pay off your loan more quickly saving you thousands in interest costs. This is achieved by structuring the right combination of fixed and floating interest rates for your loan.

You want to access new loan features.

These could be credit cards available at home loan interest rates or combining balances into an offset account. If these features are not offered by your current bank, by switching to a new bank with them, you could save money on interest payments.

Your current bank has declined an application.

You may have applied for an additional loan from your bank, for example, for the purchase of an investment property but you bank won’t approve another loan. Each bank has their own lending criteria, so another bank may be willing to provide additional funding.

You want to consolidate debts.

If you have a number of loans, such as one for your home, another for a car, a hire purchase and a credit card, you might want to consolidate these loans or debts into a single loan at a lower rate of interest.

Poor service from your current bank

You may not be receiving the service from your bank you expect, so it’s time to change!

While the thought of changing a bank appears daunting, banks are keen to accept new customers and make the welcoming, or on-boarding process as easy as possible. If you are refinancing a loan with a new bank you will usually need to open a new transaction account with them to accept your salary or wage payments.

mortgage refinancing

When you refinance, what changes, and what doesn’t?

Installments: when you refinance your regular installments, or repayments, will change as you now have a brand-new loan with repayments calculated on new terms and interest rates. In order to help with budgeting, it’s important to understand what these changes will be before you accept a refinancing proposal.

Outstanding Debt: Your loan balance will not change, so you’ll still have to pay-off the same amount of the loan you had with a previous bank – unless you have taken on more debt when refinancing.

Even if you’re not sure whether you need to refinance your current home or business loan, it is advisable to complete a regular review of your mortgage, and your current financial situation, with Global Finance. When it comes to loans, we have handled just about every type of scenario over the last 19 years. Our experience allows us to negotiate with banks on your behalf to find you the best deal, and, you don’t have to be a current customer to use our expertise and services.

We look forward to helping you with your refinancing requirements, so call us on 09 255 5500.


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  • Kaemm says:

    Excellent blog. You almost listed important factors for doing refinancing. I might need to refinance my home loan? Which bank should i go? ASB OR BNZ bank? Cheers buddy

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  • Dianne Llaneza says:

    Great info, thanks for the share!

  • Zinski says:

    Excellent blog on remortgage in New Zealand. Thanks

  • Thanks for your great resources. I am planning to refinance my ASB bank loan to ANZ bank. Thanks

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  • vedic astrology says:

    Excellent blog mortgage refinancing in New Zealand. How can i get 2.49% rates from Kiwi Bank? Cheers

  • Kayla William says:

    Excellent documentation regarding mortgage refinancing. Can you please point out a few handy ways to refinance my business loans? Cheers

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