The pros and cons of refinancing your mortgage

Refinancing your mortgage means getting a new loan, often with a different lender, to pay off your current one. This is distinct from restructuring (changing your setup) or refixing (choosing a new rate).

Kiwis often refinance to secure a better deal, such as a lower interest rate, a longer term to reduce payments, or a cash incentive. It can also be a way to release equity for other projects.

Potential downsides include costs like break fees, lawyer fees, and repaying previous cash incentives.