Refinancing Your Mortgage
Insight
Refinancing involves replacing your existing home loan with a new one, often to secure better interest rates, adjust your loan structure or change lenders. While simpler than buying or selling a property, it still requires legal work to ensure your old mortgage is removed and the new mortgage is correctly registered with Land Information New Zealand (LINZ).
Lawyers work closely with lenders to prepare documents, confirm identities, check loan conditions and complete settlement. They also help coordinate timing if your refinance is linked to a purchase or sale, or if multiple titles, securities or owners are involved.
People usually seek help when switching banks, restructuring loans after renovations, consolidating lending, or adjusting ownership after a relationship change. This guide outlines the refinancing process and what to expect when working with a lawyer.
Why People Refinance
Tip:
Before refinancing, check whether break fees apply and whether your new loan structure remains affordable if interest rates rise.
Homeowners refinance for several reasons: to secure better interest rates, fix or float loans, consolidate debt, restructure repayments, or switch to a lender whose products better suit their financial goals. Others refinance when buying an investment property or after completing renovations that increase equity.
Some people refinance because their current lender’s policies prevent them from borrowing more, or because they want to take advantage of cash incentives offered by other banks. Your lawyer helps review the legal documents and manage the practical steps involved.
Refinancing Process
Tip from lenders:
Have all supporting documents ready early, including income verification, rates notices and identification. This speeds up approval and settlement.
The refinancing process usually begins with loan approval from your new lender. Once approval is confirmed, they send loan instructions to your lawyer. Your lawyer reviews these instructions, prepares the required documentation, and obtains payout figures from your current bank.
On settlement day, your lawyer draws funds from the new lender, repays the existing bank in full, and registers the new mortgage with LINZ. They also ensure that the old mortgage is discharged and that the titles remain clear once the process is complete.
Step 1
Loan Approval
Your bank approves the loan and issues loan instructions to your lawyer.
Step 2
Document Preparation
Your lawyer prepares mortgage documents and reviews any special conditions or certifications required by your new lender.
Step 3
Discharge of Existing Mortgage
Your lawyer requests payout figures from your current bank and prepares discharge documentation.
Step 4
Settlement
Funds from the new lender are used to repay the existing mortgage in full, and the new mortgage is registered with LINZ.
Step 5
Confirmation
Your lawyer confirms settlement, provides updated title information and ensures the old mortgage is fully discharged.
Common Issues in Refinancing
Common pitfall:
Switching banks without checking break fees or how long your new lender takes to process loan instructions. This can delay settlement or reduce the financial benefit of refinancing.
Common issues include delays obtaining discharge figures, misunderstandings about break fees, title complications, or lenders requiring additional information close to settlement. Some borrowers face challenges if the property has unconsented alterations or if ownership is held in a trust or company requiring extra documentation.
Your lawyer can anticipate many of these issues and ensure the refinance proceeds smoothly and on time.
Costs for Refinancing
Legal fees for refinancing are usually lower than for buying or selling because the work is more focused. However, costs may increase if there are multiple securities, trust or company structures, cross-lease issues, or urgent timeframes. Banks may offer cash incentives that offset legal fees, but you should confirm any clawback conditions.
For general guidance on pricing, see the property lawyer costs guide.
How to Choose a Lawyer for Refinancing
Choose a lawyer who can work to your required timeframe and who regularly handles refinancing for your preferred lender. Ask how quickly they can process loan documents, whether they offer fixed-fee refinancing services and how they communicate throughout the process.
If your refinance involves changes to ownership, multiple securities or trust/company structures, consider a lawyer experienced in those areas as well.
Find a Lawyer for Refinancing
Explaining your timeline, current lender and new lender helps match you with a lawyer who regularly handles refinancing matters. This avoids delays and ensures that your bank’s requirements are met efficiently.
By outlining any ownership changes or concerns about consented or unconsented works, you allow potential lawyers to assess your situation more accurately.
Need help refinancing?
Tell us about your lending and timelines to get matched with refinancing lawyers.
Frequently Asked Questions
Do I need a lawyer to refinance my mortgage?
Yes. Most lenders require a lawyer to discharge your existing mortgage, review the new loan documents, register the new mortgage and complete settlement. The process is similar to the legal work involved in a purchase, but usually simpler.
How long does refinancing take?
Refinancing typically takes 5–10 working days once loan documents are issued. It can take longer if your existing bank needs time to process the discharge or if your new lender has conditions to meet before releasing funds.
What information will my lawyer need when refinancing?
Your lawyer will need details of your existing lending, current mortgage account numbers, loan instructions from your new bank, and any changes to ownership structure. They may also ask for updated identification if required for anti–money laundering compliance.
Can I refinance if the property has unconsented works?
Some lenders may be cautious if there are unconsented alterations, significant weathertightness issues or title complications. Your lawyer and mortgage adviser can confirm whether the property meets the new lender’s requirements before proceeding.
Will refinancing affect my settlement if I am also buying or selling?
Yes. Timing becomes important when refinancing is linked to a purchase or sale. Your lawyer can coordinate all settlements to ensure funds flow correctly and that mortgages are registered or discharged at the right time.
You don’t need all the answers
Property issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.
Get Help From a Lawyer for Refinancing
Refinancing in New Zealand involves reviewing loan documents, discharging existing lending and registering new securities. Providing a short overview of your current lending, the new lender’s requirements and your timeline helps match you with lawyers who regularly assist with refinancing matters.
By outlining the property type, whether you are restructuring ownership and whether the refinance is urgent, you can connect with professionals who understand the steps involved. While this does not guarantee representation, it helps you find suitable options faster.