Refinance

Refinancing of a home loan is the process of borrowing money from a different lender and moving your home loan to a new lender. There are many lenders in the New Zealand market, and they all have their quirks and preferences. Some lenders specialise in the First Home Loan market. They offer cheaper rates to home buyers who live in their property while charging a higher interest rate for investment property that they own While some lenders specialise in construction loans and offer competitive interest rates when clients are building a new house. Refinancing home loans is a powerful tool that a borrower can use to keep their banks honest and receive a competitive home loan rate from them.

A broker deals with multiple lenders at any given time thus they have a good idea of what a competitive rate should look like. If the rates have moved up with the customer’s existing bank but other lenders are yet to increase their rate, then the broker can negotiate and arrange a cheaper rate for their customer. Given the large home loans that average Kiwis have these days, this reduced interest rate can save a significant amount. I had a client whose bank had increased their interest rate by 0.5% while the other banks had still not increased their rates. We asked their existing bank to consider matching what the client could get from other lenders at the time. Bank was not interested in reducing the rates by that amount, so clients agreed to refinance their loan elsewhere. They not only saved $4,375 in the interest rate reduction but were also offered $6,125 in cashback as an extra incentive. This cashback not only covered any cost of the refinance such as lawyers’ fees but also gave them a nice little extra cash to spend.Overall, the deal was almost $10,000 extra money saved by the clients. And this all happened because we knew what the rates were doing in the market at the time and felt that the lender was not offering a good rate to the client.

5 reasons to Refinance a home loan:

Existing bank is not offering competitive rates– If your own lender is not offering good rates then there is no harm in finding out what other competing lenders would offer to you. I have seen rate variation as much as 0.5% between lenders.
New lender is willing to offer a cash incentive to have your home loan business with them– Most lenders offer a cashback incentive to borrowers to win their business. I have met clients who do not know about these incentives and have never received them. The cashback can be anywhere from 0.5% of the loan amount upto 1% of the loan amount. So, on a $1m loan, the cash back can vary from $5,000 to $10,000 between lenders and at different times. A bank may be aggressively buying home lending business and so might offer a higher cashback, it is worthwhile to check on what different lenders are offering.
Current lender is unwilling to facilitate your next project– You may be looking to borrow additional funds to add a few extra rooms to the house to accommodate the growing family. However, your lender thinks it is not something they could fund as they perceive higher risk in lending you more funds orthey currently have no appetite to lend for this kind of projects. So rather than delaying the project, you can refinance to a lender who is willing to support your project. This means you can get a bigger house when you want but will also allow you to avoid any future building inflation by not delaying the project.
Children are of a certain age, and they wish to purchase their own home– They do not have sufficient savings to enable them to put as a deposit because they were students or spent money on their wedding and the OE, however, they still have good incomes and can afford to service their loan. There are lenders who support the idea of parents helping their children to buy their own houses using the equity in the parents’ house without physically releasing the equity from parents’ house. These are brilliant tools to empower the next generation and may require refinancing parents’ home to a lender who would support such a loan.
Refinance to borrow – People refinance to borrow funds to buy a business or inject funds from the equity in their house.Some lenders are more open to the idea of using equity in the home to spend in the business while some lenders are more conservative. So, in this instance, refinancing the loan could enable you to borrow money at home loan rates rather than a more expensive business loan.

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I recommend that you allow Ash to offer you a plan based on your needs for the future and like me you will not regret it.

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Very happy with the support received from Ash and the team. Ash has been extremely supportive and has gone above and beyond to communicate the plan and explain things.
Highly recommend!

P Joseph

My husband and I had brought a house and had gone around the banks to get the best deal we could on our mortgage and then we had a presentation at work by Ash on how mortgage brokers can help. I decided before we finalised anything to have a chat with him and I am glad that I did. Ash managed to get us an extra 0.4% off our fixed rate and an extra $1k cash bonus. This was with our current bank and our advisor at this bank had already told us he could not match a slightly better rate by another bank. I couldnt believe that Ash could get us a rate that was so much better. Would definitely recommend having a chat with Ash.

Olivia Thompson (nee Coker)

Product Management | Corporate Tax | Financial Services

Thank you so much Ash for helping us out to buy our first home. It was you guys who had lot of patience with us as it was our first time. You really explained us everything step by step so well that we could understand.Once again would like to thank you and Prinal for all you have done for us.

Munesh R

Having observed Ash in action with his clients I have witnessed the professionalism that he displays. Ash takes his time to carefully understand his clients needs. Then, with his indepth understanding of his products and the insurance industry Ash is able to add genuine value.

Matthew Isbister

Award Winning Investment and Mortgage Adviser

Ash T. first let me start by telling you how grateful I am for all the work you did on my behalf. I know it wasn’t easy but you did it. This was a financial turning point for us We really appreciate all the work you put in to helping us get our mortgage. You absolutely went above + beyond all our expectations. I will certainly refer you. if I know of anyone wanting a new mortgage for any reason at all, I will be happy to refer them to you. Thank you again.

Leony Sebastian

Exceptional knowledge on lending! Ash was very clear in guiding us and patiently addressed every questions we had! Highly recommended service.

Jithin B

Ash was very professional. He explained us the process thoroughly in layman’s term which helped us to make decision quickly and efficiently.

H Khera

I’d like to say a big Thank You! to Ash Teotia for his assistance in refinancing our mortgages.

We were looking to review our home lending as all our lending was floating and we thought it might be time to consider fixing at least some of it. Ash’s help was invaluable and with his help we have created a structure that meets our needs and obtained very favourable rates.

If you haven’t taken the opportunity to have a chat with Ash, I recommend it – for a small investment in effort you may be able to realise some significant savings

Gary Carson

Business Improvement Specialist / Business Analyst

Ash Teotia has been helping us through every step of our first build process, answering all of our late night queries and setting up, as expected, through stages in the process. We have gone through the this process, with total understanding each step of the way, thanks to Ash and his outstanding commitment to us through our biggest milestone to date. I cannot recommend him enough, he’s been a lifesaver.

Gage T

Thank you so so much for all the help from your team especially yourself through all year of trying getting our mortgage sorted for me and my family. It would not happened without your dedication.

F Fenton

Thank you so much Ash and your team for all your help! Today is our first journey of being an investor! Yay!!!

A & J Delubio

Firstly I would like to thank Ash for his continuous support shown to me and my family with the finance process and it would have NOT been possible without him. He is very humble, patient and hardworking person and deals with every thing in a professional manner. From the start to the end and till today he still is in contact which shows how supportive he is. We wouldn’t have fulfilled our dream if he wasn’t there as our mortgage broker in this process. The more we praise him is very less but I would like to thank you from our heart in supporting us to purchase our dream house which we never thought of and also the process in dealing with the bank in getting approval for such a big amount and not only that getting extra funds in level 4 lock down to settle our purchase. We have already recommended him to our family and friends and will continue to support him in near future I wish him all the best and success ahead.

Charles S

Thank you for helping us secure our first home. We wouldn’t have gotten to reach this milestone if it wasn’t for all your hard word. Thank you for going the extra mile for us and for never giving up on this journey.

Chance & Mohit

I would happily reccomend Ash to anyone looking for financial advice or with assistance to broker a loan. Ash recently brokered a home loan for us and not only got an excellent deal for us but also provided valuable advice and made the whole process as seamless as possible.

Brendan McQuade

Regional Manager – Upper North Island at PGG Wrightson Ltd

Very grateful for all the hard mahi that Ash and the team have performed over the past year. From being told that I wouldn’t qualify for a mortgage by another broker due to my overseas income to Ash and the team lining up 3 banks to offer me a loan is outstanding. Ash and the team provide a very personalized service and will go the extra mile to make sure all my mortgage and insurance bases are covered.

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Ben W

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