Refinance Your Mortgage & Save Thousands

Lower your interest rate, reduce payments, or access your home equity. Compare rates from 50+ lenders.

Compare Refinance Rates

Could You Save Money by Refinancing?

Current Average Rate

7.24%

Best Available Rate

6.29%

Potential Saving

0.95%

On a $500,000 mortgage, that's:

$4,750 per year

$395 per month | $91 per week

Why Refinance Your Mortgage?

1. Lower Your Interest Rate

If rates have dropped since you first got your mortgage, or your financial situation has improved, you could qualify for a better rate and save thousands.

2. Reduce Monthly Payments

A lower rate or longer loan term can significantly reduce your monthly payments, freeing up cash for other expenses or investments.

3. Access Home Equity

Use the equity built up in your home for renovations, debt consolidation, investment property, or other financial goals. Learn about accessing equity →

4. Consolidate Debt

Roll high-interest debt (credit cards, personal loans) into your mortgage at a much lower interest rate. See debt consolidation options →

5. Change Loan Terms

Switch from floating to fixed rates, adjust your loan length, or change features like offset accounts or redraw facilities.

6. Remove Low Equity Premium

If your property value has increased or you've paid down your mortgage, you may no longer need to pay low equity fees.

When Should You Refinance?

Good Times to Refinance:

  • Interest rates have dropped by 0.5% or more since you got your current mortgage
  • Your fixed rate is about to expire and you want to shop around for better rates
  • Your property has increased in value and you now have more than 20% equity
  • Your income has increased and you qualify for better rates
  • You need to access home equity for renovations or investments
  • You want better features like offset accounts or flexible repayment options

Be Cautious When:

  • You're locked into a fixed rate - breaking fees can be $10,000+ and may outweigh any savings
  • Your property value has dropped - you may not have enough equity to refinance
  • You're planning to sell soon - you may not recoup refinancing costs
  • Your credit score has worsened - you may not qualify for better rates

What Does Refinancing Cost?

Understanding the costs involved in refinancing helps you determine if switching is worthwhile.

Break Fees (Fixed Rate Mortgages)

$0 - $15,000+

If you're locked into a fixed rate, breaking early can cost thousands. Always check with your current lender first. If your fixed term is ending soon, wait to avoid these fees.

Legal Fees

$500 - $1,500

You'll need a lawyer to handle the refinancing paperwork. Some banks offer cashback deals that can cover these costs.

Valuation Fees

$0 - $800

New lenders may require a property valuation. Many banks waive this fee or use automated valuations for free.

Discharge Fee

$200 - $500

Your current lender charges this to remove their mortgage from your property title.

Total Typical Cost (no break fees)

$700 - $2,800

If you're saving $4,000+ per year on a lower rate, refinancing pays for itself in less than a year.

Cash Back Offers: Many banks offer cash incentives ($2,000-$5,000) when you refinance to them, which can cover most or all of your refinancing costs.

The Refinancing Process

1

Compare Rates

Shop around and compare rates from multiple lenders. Even a 0.5% difference can save thousands over the life of your loan. View current rates →

Compare rates now
2

Check Break Fees

If you have a fixed rate, contact your current lender to find out if there are any break fees. These can be significant, so factor them into your decision.

3

Apply for Refinancing

Submit your application to the new lender. You'll need proof of income, property valuation, and details of your current mortgage.

4

Get Approved

The new lender will assess your application and conduct a property valuation. Approval typically takes 1-2 weeks.

5

Complete Legal Work

Your lawyer will handle the paperwork, including discharging your old mortgage and registering the new one.

6

Start Saving

Your new mortgage is in place and you'll start making payments at your lower rate. Time to enjoy the savings!

Timeline: The entire refinancing process typically takes 4-6 weeks from application to settlement.

Refinancing FAQs

How much can I save by refinancing?

It depends on the rate difference. A 0.5% reduction on a $500,000 mortgage saves approximately $2,500 per year. A 1% reduction saves around $5,000 annually. Use our comparison tool to see your specific savings.

Will refinancing affect my credit score?

Yes, temporarily. Credit enquiries from lenders cause a small, short-term dip (usually 5-10 points). However, this recovers quickly, and the long-term benefits of a better mortgage typically outweigh the temporary impact.

Can I refinance if I have bad credit?

It's more difficult but not impossible. You may need more equity in your home (30%+) and will likely face higher interest rates. Some specialist lenders work with borrowers who have credit issues.

Should I refinance with my current bank?

Always compare! Your current bank may offer a loyalty rate, but you'll often find better deals by switching. Banks usually offer their best rates to attract new customers rather than retain existing ones.

How much equity do I need to refinance?

Most lenders require at least 20% equity. With 10-20% equity, you'll likely pay a low equity premium. Below 10% equity, refinancing options are very limited.

Can I refinance an investment property?

Yes! Investment property refinancing follows similar rules, though you may need more equity (typically 30-35%). Rental income can be used to support your application.

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Last updated: March 24, 2026 | Rates and information verified with RBNZ