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Already own a home
Owning your home is the start, not the finish. Whether you’re moving, building, refixing or trying to get debt down, the way your loan is set up makes a real difference to what it costs you.
By Yatin Kainth, Financial Adviser FSP1007497. Last reviewed
Short answer
Existing home owners in NZ can usually do more with their mortgage than they think. Your equity can fund a move, a build or a renovation, a refinance can cut your rate or clear expensive debt, and a better loan structure can take years off the term. A broker compares lenders for you at no cost in most cases.
Pick the option closest to where you are and I’ll point you to the right page.
Most of what you can do as an owner comes back to equity: the part of your home you own outright. Banks usually let owner-occupiers borrow up to 80% of the value without a low equity margin. Put your numbers in to see where you stand.
Your equity
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Current loan-to-value ratio
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Usable equity at that limit
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Usable equity is a rough ceiling, not a loan offer. A lender also checks you can afford the extra borrowing on your income at their test rate.
Buying your next home before or after you sell, and how to move your loan.
Moving house →Construction loans, progress payments and what banks need from your builder.
Building →Splits, offset, revolving credit and refixing well.
Loan structure →Practical ways to pay your mortgage off years sooner.
Pay it off →Switching lenders for a better rate, cashback or structure.
Refinancing →Unsecured and secured loans, and when the mortgage is cheaper.
Personal loans →Financing a car the cheapest sensible way.
Vehicle loans →Rolling high-interest debt into one lower repayment.
Consolidation →Your bank only shows you its own products. When your fixed rate rolls off, the offer in your letter is often not the best that bank will do, and another lender may pay a cash contribution to move. I compare more than 30 lenders, and I look after the loan after settlement too, so you get a reminder before each refix instead of finding out from a letter.
For most home loans the lender pays me, so the advice costs you nothing. If a fee ever applies, I tell you first, in writing.
Yes. Many owners use equity as the deposit for an investment property or their next home. The bank looks at total borrowing against total value, and you still need the income to service both loans. See property investment loans.
At least every time a fixed rate ends, and whenever your income, family or plans change. A quick review once a year is a good habit.
A loan application does add an enquiry to your credit file, but one well-timed application has a small effect. Lots of applications in a short time is what to avoid.
Usually not. Lenders pay brokers a commission on most home loans. I’ll tell you upfront if any fee applies.
A 20-minute chat costs nothing. I will tell you straight what lenders are likely to say.
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