In this mortgage refinancing guide, we walk you through the process, key decisions, tools and FAQs, so you can make confident, informed choices about refinancing. If you’re looking for an overview of refinancing eligibility and benefits, see our Refinance Hub. This guide is designed as a practical step-by-step resource, showing you how refinancing works in detail and what to expect along the way.
At it’s core, refinancing means replacing your existing home loan with a new one. This may involve lowering repayments, restructuring the loan, or accessing funds for other goals.
The key idea is that your old mortgage is discharged and a new agreement takes place – often with different terms or a different lender.
Identifying the ideal time to refinance is important, so you should consider and ask:
When to refinance depends on your unique circumstances. For a deeper dive into timing, see our article “Is it a good time to refinance when rates are low“.
Ready to explore your options? Start your application online and let us guide you through the process.
Now that you understand the basics and when refinancing might make sense, here’s a clear look how the process works in practice – from your first financial review through to settlement.
We start by reviewing your current mortgage, equity, credit history, income stability, and personal goals. This helps determine if refinancing will genuinely improve your position.
Why it matters: A thorough review avoids applications that don’t fit lender criteria and focuses effort where you’ll see real benefit.
Pro tip: Have recent payslips, bank statements, and your current mortgage statement ready — it can save days.
We compare options across banks, non-banks, and finance companies, looking at rates, structure, fees, and incentives as part of your refinancing process.
Why it matters: Similar-looking offers can differ in flexibility, long-term cost, and risk. The right structure often beats the lowest headline rate.
Pro tip: Think ahead 12–36 months — renovations, income changes, or property plans can influence the best structure today.
Once we identify the best lender and structure, we prepare and submit your application. you will need to provide:
Why it matters: Clean, complete documentation is the #1 factor in fast approvals and smooth processing.
Pro tip: Make sure names and addresses are consistent across documents which prevents back-and-forth and keeps your file moving.
When your application is approved, you’ll receive a loan offer to review and sign. At settlement, your existing mortgage is repaid and replaced by the new one.
Why it matters: This step finalises the legal transfer, ensures your loan is set up correctly, and that your new repayments start smoothly.
Pro tip: Look over cash-back clawback periods and fixed-rate terms carefully, since understanding these upfront gives you confidence about your future options.
When considering refinancing, it helps to run the numbers before making a decision. Here are some calculators homeowners often use:
We also have a mortgage calculator available on our site. It’s a quick way to explore repayments and savings before speaking with us. Remember – you don’t have to run these numbers on your own – we can step through them with you and show how refinancing might work in your situation.
Loan-to-Value Ratio (LVR): The percentage of your loan compared to your property’s value. A lower LVR usually unlocks more lender options and sharper pricing. As a guide, having 20%+ equity (≤80% LVR) often leads to better offers.
Equity: Your property’s value minus what you owe on the mortgage. Equity can grow as you repay or if your home value rises. You can access it via a top-up or a full refinance. See examples in our home equity blog.
Break Fee (Early Repayment Cost): A charge some lenders apply if you end a fixed-rate loan early (e.g., to refinance before the term ends). It depends on the time remaining and current wholesale/market rates.
Fixed Rate vs Floating (Variable) Rate: A fixed rate gives certainty for a set term; a floating rate moves with the market and is more flexible for lump-sum repayments or early changes. Many borrowers use a mix.
Refix vs Refinance: Refix: choose a new fixed term with your current lender at the end of a fixed period. Refinance: restructure your lending and/or switch lenders to improve rates, structure, or features. For practical tips see our refinancing strategies and best practices blog.
Top-Up (Home Loan Increase): An increase to your existing mortgage (usually with your current lender) to fund things like renovations or debt consolidation—without changing lenders. Compare with a full refinance to ensure you’re getting the best structure and rate. Learn more about debt consolidation in NZ.
Valuation (E-valuation vs Registered Valuation): Some lenders accept an electronic/desktop “E-val” (no visit), while others require a full registered valuation by an independent valuer who inspects the property. The lender decides which is needed.
Cash-Back Offer: A one-off incentive some lenders pay at settlement when you refinance to them. Often subject to a clawback if you leave within a set period (commonly 2–3 years). Don’t choose on cash-back alone—you do want to compare overall cost and structure.
This guide has walked you through how mortgage refinancing works in practice — from reviewing your finances, comparing lenders, and submitting documents, through to approval and settlement. You’ve also seen the tools, FAQs, and glossary terms that can help you understand the process with confidence. If you would like to chat more about your specific situation, reach out.
Angela is an accredited Financial Adviser, licensed under FSP742251 and has been in the Financial Industry since 2006. Our 5-star Google reviews reflect the excellent customer experience we promise — making your home loan journey positive, stress-free, and rewarding. At Platinum Mortgages, our clients are the reason we exist — so you can be confident your home loan journey is guided by genuine care and expertise.
