Refinancing your Home Loan
My Money will help you secure the home loan that suits your needs. Give us a call today.
What refinancing means.
Refinancing means replacing your current mortgage with a new one, either with your existing bank or with a different lender. People refinance for a better interest rate or a cash contribution, to restructure or consolidate debt, to access equity, or to fund renovations or another purchase.
Changing lender is not always worthwhile. Break costs, legal costs and valuation costs need to be weighed against what you would save, which is why it pays to check the numbers before you move.
It also pays to review your options before a fixed term ends, rather than accepting the first rate shown in your banking app.
Click to read A Guide to Mortgage Refinancing 
Compare rates and loan terms with our Mortgage Calculator Refinancing Your Auckland Home Loan
How to Refinance a loan and when?
Refinancing your mortgage involves replacing your current mortgage with a new one that has better terms, such as lower interest rates and more extended repayment periods. This process can help you manage the repayments within the family budget better if required.
Types of Refinance Loans
With the way interest on loans go up and down in the market. It is now possible to get loans with good interest rates. Refinancing your loan might be a great and intelligent step you should take in order to repay your loans. We have a few types of refinance loans, some of which include:
Rate and Term Refinance
It is a common type of refinance loan in which an existing loan is replaced by a new loan with a better term or interest and the new loan is used to repay the old debt. For instance, you can replace a variable rate mortgage loan with a fixed rate mortgage loan because of its advantage. A fixed rate mortgage loan has a fixed interest rate throughout the fixed period of the loan.
Short Refinance
This kind of refinance is not really common and it is not easy to come by. It usually when you have a debt that is excessive and may lead to foreclosure of your property. It involves a bank or lender paying off your old loan and replacing it with a new one with better and lower interest.
Cash out & In Refinance
Cash-out refinance loan are finances useful for someone in need of cash. This kind of refinance has a few requirements. The first requirement is that your home or owned property should be worth more than the mortgage loan. This kind of refinance loan involves paying off the existing loan and taking out a new loan.
Cash-in refinance loan is a type of refinance loan in which cash is brought in by the borrower, thereby trying to reduce or decrease the value of the mortgage loan.
Pros of Refinancing
Refinancing can be a very smart loan option that assists in the payment of one’s debt. However, it has some benefits, some of which includes:
Refinancing assists one in a way to save money. When a loan is replaced by another loan with better terms or interest rate (low), thus saving some money.
Refinancing helps in a way by lowering the payment of the debt monthly as well as extending the deadline for payment. It looks like you restart the timer for the loan when refinance.
Refinancing can help you reduce a long-term loan to a short-term loan with better and lower interest. For instance, a 25-year loan can be replaced with a 10-year loan with lower interest rates. You can get a shorter term without an interest rate differnce and could lower the interest rate retaining the longer term.
You can change your loan option from an adjustable rate to a fixed rate, most especially when you want to protect the low-interest rate which might increase.
The Right Time to Refinance
There is always a right to do anything you want to do. As there is a right time to collect a loan, there is also a right time to refinance that loan.
How to Refinance
Refinancing can be a very daunting aspect of financing, you definitely need an expert or professional to lead you through this path. We can help you with quality financial advice on the right time to refinance, which kind of refinance loan to use as well as how to avoid its disadvantages.
How I can help you refinance.
- Review your current loan and compare it with what is available.
- Talk through whether staying with your bank or moving makes sense for you.
- Look at fixed terms, repayments and loan structure, not just the headline rate.
- Work through break fees and other costs so there are no surprises.
- Handle the paperwork and the conversation with the new lender.
Common questions.
Can I refinance my mortgage to another bank?
Yes.
Refinancing can be considered for reasons including:
- A better interest rate
- A cash contribution
- Restructuring your debt
- Consolidating other lending
- Accessing equity
- Renovations
- Buying another property
- Poor service from your existing lender
Changing banks is not always worthwhile, however.
You should also consider any break costs, legal costs, valuation costs and potentially the repayment of previous cash incentives.
We can help you compare the overall benefit rather than focusing solely on the headline interest rate.
What happens when my fixed interest rate expires?
If you do nothing, your mortgage will generally move onto the lender's floating or variable rate.
That rate may be considerably different from your existing fixed rate.
We recommend reviewing your options before your fixed term expires rather than simply accepting the first rate displayed in your banking app.
There may also be an opportunity to review the structure of your lending, repayment amounts and wider financial plans.
How long should I fix my mortgage for?
There is no single fixed term that is right for everybody.
Your decision should take into account:
- Current fixed rates
- Your expectations for future rates
- How long you intend to own the property
- Your ability to absorb higher repayments
- Whether you expect to make lump-sum repayments
- Your need for certainty
- Your wider financial plans
Rather than simply selecting the lowest advertised rate, we believe your mortgage structure should reflect what you are trying to achieve over the next few years.
Can you negotiate a better interest rate with my bank?
Sometimes.
The advertised rate is not necessarily the only rate available.
Depending on the lender, loan size, equity position and market conditions, there may be opportunities to request a pricing discount or negotiate other incentives.
Interest rate is important, but it is only one part of choosing the right lending solution.
What is a mortgage break fee?
If you repay or restructure a fixed-rate loan before the fixed term expires, the bank may charge an early repayment or break cost.
Whether there is a cost — and how large it is — depends on factors including wholesale interest rate movements and how much time remains on the fixed term.
Before changing a fixed loan, it is sensible to request an indicative break cost and calculate whether the benefits outweigh the cost.
What is a mortgage cashback or cash contribution?
Banks sometimes offer a cash contribution when you take out or refinance a mortgage.
The amount offered can depend on your loan size, equity position and the bank's current campaign.
Cash contributions usually come with conditions. In particular, you may be required to repay some or all of the contribution if you refinance or repay the mortgage within an agreed period.
What clients say.
All client storiesWhat a fantastic experience we had with Stephen and Joanne from My Money. After having issues with our own bank, we seeked out a mortgage broker to help gain a home loan while remortgaging our current home to help purchase a new one. Stephen contacted me immediately and within hours we were in a meeting discussing what we wanted to achieve. He was realistic with possible outcomes and didn't overpromise. We really appreciated this type of approach. Stephen and Joanne were very thorough throughout the preparation steps which resulted in us gaining a loan amount that exceeded our expectations. We are now in our new home and are so happy we contacted Stephen from My Money when we did. Highly recommended.
Following a recommendation from our financial advisor we went to Stephen to find a way to break our high fixed interest loan. Stephen quickly found another lender who heavily eased our break fee and offered to refinance at a much lower rate. Stephen guided us through the process which was accomplished quickly and easily. The outcome was a saving of thousands of dollars and a relationship with a new lender who seems to value us more than our previous one. I will certainly be engaging Stephen again.
I used MyMoney to remortgage my primary home loan - including restructuring the repayment profile. Stephen and the team delivered a great outcome, notably they were able to match a market leading rate that was marketed only a few days prior to settlement, delivered a competitive cash back and ran the process and administrative matters smoothly. Stephen has strong relationships with key banks and was able to give me confidence very early on expected terms.
We are looking for refinancing our mortgage hence we got in touch with Stephen. He is very accommodating and easy to deal with. We discussed to him what we wanted (low interest rate and good cashback) and our timeframe. He was able to get a good deal for us and even recommended reliable contact/s (lawyer) . We are very please with their service. Appreciate Stephen and his team. Highly recommended.
We came to Stephen wanting to refinance our home loan to another bank. Our account were looking pretty complex at the time, and with a lot of boxes to get ticked in the process, Stephen made it easy for us, and very cost effective. Everything went through seamlessly without a hitch, and now our home loan structure is much more straightforward!!
I can highly recommend dealing with My Money. Stephen and team we able to help me with the refinancing of my mortgage. They were able to offer me some very good advice and point in me towards the best available option given my circumstances. The end outcome was an optimal solution for me and my family. Stephen and team we very professional in their interactions and the results speak for themselves. Thank you My Money
First time using a Mortgage Broker, I googled and sent emails to a bunch of Brokers. Stephen called back within a couple hours - always a good sign.
I wasn't happy with the rates my bank was offering, so I asked if Stephen could do better. Stephen went back and forth a couple times with my bank when I wasn't happy with the initial offer. He escalated the negotiation with a bank manager, before returning with a better rate.
Stephen was responsive throughout the process, kept me up to date and acted with professionalism and integrity. Would highly recommend to anyone that needs a mortgage broker.
Not sure whether refinancing would save you money?
Book a free, no-obligation meeting with Stephen.