Statistics and recent commentary show that a record number of Kiwis are changing lenders. In June 2025, more than 3,500 borrowers refinanced, around $8.3 billion in loans, driven by competitive offers, low/avoidable break fees and cash contribution offers. This was the largest amount of refinances in one month since the Reserve Bank began tracking data in 2017, and up almost $2.6 billion from June 2024. With roughly 14% of loans on floating rates and a further 39% of fixed loans due to roll off by the end of 2025, it is a pertinent time for many households and businesses to consider switching their lending provider.
When looking to refinance there are a number of key steps which you need to undertake.
GET IN TOUCH WITH A MORTGAGE BROKER
The first port of call when you are looking to refinance your lending is to get in touch with your mortgage broker. A good mortgage broker will be able to canvas multiple lenders and products so you can get a realistic look at your options, not just what is advertised. They are able quantify the true cost of switching lenders and assist in designing a loan structure that fits your goals. Brokers can help to negotiate special rates, streamline your application to the banks and can assist with arranging valuations where required.
If you do not have a mortgage broker, we work with a number of brokers on a regular basis who we are able to put you in touch with.
GET IN TOUCH WITH A LAWYER
It is important to get your lawyer involved early on in the refinance process. Early reviews of property titles and security checks will help to identify caveats, encumbrances, covenants and body corporate issues that could be considered for the new lender. We also ensure the structure and documentation are correct, this is particularly important for more complex ownership structures such as trusts and companies where guarantees are often involved. These ownership structures often require resolutions, certificates, and independent advice. We are able to coordinate with banks, your mortgage broker and insurance provider from the outset to help reduce last-minute risk/delays and ensure settlement occurs smoothly.
LOCK IN STRUCTURE AND SIGN DOCUMENTS
Once you lock in your loan structure, the lender will issue documents to us to review. We will then prepare the necessary supporting documentation, advise you on the documents issued by the bank, (including the terms of the mortgage and any guarantees where applicable) and meet with you to sign. Following the new lender accepting and approving all of the signed documents, we will arrange for settlement to occur. This includes your existing lender issuing us with a repayment statement, and us making payment from the funds received from the new lender – we will also update the title at the same time. Depending on the complexity of your ownership structure, and the requirements of the new lender, we can usually complete settlement within 1-2 weeks of receiving the documents from the new lender.
FINAL THOUGHTS
If you are going through the process of refinancing, it is also a good time to consider whether there are any changes which need to be made to the ownership structure of your property. This could include whether you need to transfer your property into a different structure (ie. a company or a trust) or whether you need to make amendments to your structure, such as changing trustees – as these changes will almost always require the consent of your lender. It can be more cost effective for you to roll any of these changes in with your refinance, and get the matters resolved at the same time.
If you are in the position of refinancing your property, or are considering weighing up your options, our experienced Property and Private Client Team would be more than happy to assist you.
