Refinancing Your Home Loan: What’s Involved, Why You Need a Lawyer — and How a Mortgage Broker Can Help
Refinancing your mortgage can be a smart financial move, whether you’re chasing a better interest rate, switching banks, or unlocking equity to renovate, invest or restructure debt. But refinancing isn’t just a matter of signing new bank documents. It’s a legal transaction that affects your title and your obligations — which is why having a lawyer involved is essential.
At Goodwill Law, we work alongside your broker or bank to ensure the refinancing process is smooth, legally compliant, and completed without unnecessary delays. Here’s how it all works — and how a mortgage broker can add value too.
What Does Refinancing Involve?
Refinancing means replacing your existing mortgage with a new one. This could involve:
Moving to a new lender
Negotiating better interest rates or loan terms
Consolidating other debts into your mortgage
Releasing equity for other projects (e.g. renovations or investments)
Once you've decided to refinance, the process unfolds in a few key stages.
Step-by-Step: How Refinancing Works
1. Compare Loan Options
Start by assessing your current loan and what else is on the market. You can do this independently or through a mortgage broker (more on this below).
2. Apply for Finance
Once you've chosen a new product or lender, you’ll apply for the new loan. Upon approval, the lender will issue a formal offer.
3. Engage a Lawyer
Your new bank will send loan instructions to your lawyer, who is required to handle the legal side of the refinance — including discharging the old mortgage and registering the new one.
What Your Lawyer Does
At Goodwill Law, we:
Review and explain your new loan and mortgage documents
Liaise with your existing lender to arrange discharge of the current mortgage
Coordinate with your new lender for settlement
Complete and certify all documentation required for Land Information New Zealand (LINZ)
Confirm when your refinance is complete and provide final reporting
This is not something you can do without a lawyer — refinancing affects your legal title, and banks require a solicitor to act on your behalf.
Benefits of Using a Mortgage Broker
While it’s possible to deal directly with your bank, many clients choose to work with a mortgage broker, and for good reason. Here are a few benefits:
Access to multiple lenders: Brokers compare options across a range of banks and non-bank lenders, helping you find the most competitive deal.
Tailored advice: A good broker understands your goals and can structure lending to suit your personal and financial circumstances.
Time-saving: They handle paperwork, negotiations, and follow-ups — saving you hours of admin and calls.
Often free to you: In most cases, brokers are paid a commission by the lender, not by you — so their service typically comes at no cost.
Support through the process: Brokers can liaise with your lawyer and bank to ensure the refinancing process runs smoothly.
At Goodwill Law, we regularly work with trusted brokers and are happy to connect you with someone reputable if needed.
Use Our Online Fee Calculator
Want to know how much a refinance will cost? Our online fee calculator gives you an instant estimate of your legal fees for refinancing — no need to wait for a quote. Just answer a few simple questions and you’ll have a clear cost in minutes.
Final Thoughts
Refinancing can be a powerful financial tool, but it’s important to understand the legal side of the process. Discharging and registering mortgages, verifying identity, and ensuring correct settlement all require a lawyer’s oversight.
At Goodwill Law, we’re here to guide you through each step and make the process easy. Whether you’re refinancing for a better deal, a restructure, or a top-up, we’ll ensure it’s done right — and with no surprises.
Thinking about refinancing?
Contact us today, or use our online fee calculator to get started.