The pros and cons of refinancing your mortgage

Refinancing your mortgage means getting a new loan, often with a new lender, to pay off your current one. It differs from restructuring or refixing with your existing bank.

Kiwis often refinance to secure a better deal, like a lower interest rate, reduced repayments, or a cash incentive. It can also release home equity for other projects. However, be aware of potential costs like break fees, lawyer fees, and incentive clawbacks.

An annual mortgage review is recommended, and a mortgage broker can help compare lenders and simplify the process.