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Refinancing · HouseMe Legal

Is refinancing worth it?

Lower rate, cashback in, break fee and legal out. Find the month you're ahead.

Your broker finds the rate and negotiates the cashback. Your current bank quotes the break fee. We do the legal side for a fixed $1,144 including GST, plus about $268 of LINZ charges. This page puts those four numbers together so you can see the one that matters: how many months until the switch has paid for itself.

Brokers — share this with any client asking "is it worth the hassle?".
The HouseMe Legal Sherpa, your guide up the mountain
Cashback usually covers the legal feeMost bank cashbacks are larger than the whole legal and LINZ cost. The break fee is the number that decides it.
Cashback comes with a clawbackLeave that bank again inside a few years and they claw the cashback back. Check the period in the offer.
5 to 7 working daysFrom your new bank issuing loan documents to settlement. Tell your broker the date you want and we work back from it.
Nothing to do on the dayNo keys, no truck. Your old loan is repaid and the new mortgage registered by mid-afternoon.
1

Your loan, today and after

Use the figures from your broker's proposal and your current bank's payout quote.

Compare over3 years
1 year5 years (a typical clawback period)
2

The month you're ahead

Repayments are principal and interest over the years left. Everything is in today's dollars.

Now
—
a month at your current rate
After
—
a month at the new rate
Saving each month
—
lower repayment
Cost to switch
—
break fee + legal + LINZ, less cashback
Ahead after
—
months
Settlement day—

The one-off costs

3

What happens on settlement morning

You will not see any of this happen. Here is the flow so the silence doesn't worry you.

Before
5 to 7 working days out, you signYour new bank issues loan documents to us. We explain them, you sign, we certify them back and note your insurance to the new bank. We ask your current bank for a payout figure for the day.
7:30am
Our heads-up emailWhat is happening today, in what order, and the only thing you need to do: nothing. Please don't ring either bank; it slows the handover.
Late morning
Final payout figure arrivesYour current bank confirms the exact amount to close the old loan today, including any break fee.
Early afternoon
New bank releases the fundsWe repay the old loan, the old mortgage is discharged, and the new mortgage is registered on the title.
1pm to 3pm
DoneWe confirm by email. Your new banking app may take a day to show the loan. Busy Fridays can run later. Unless you hear from us, everything is tracking.

Switching? The legal side is $1,144 fixed

Discharge of the old mortgage, registration of the new one, loan document review and signing, title searches before and after. Book a free call and tell us the date you want; we'll work back from it.

Book a free 15-minute call

Or call 09 918 9404  ·  angus@housemelegal.co.nz