Should I Refinance My Mortgage in 2025? Here’s What to Consider

As we settle into 2025, many Kiwi homeowners are asking the question: Should I refinance my mortgage?

The short answer? It depends on your individual goals and circumstances. Refinancing can be a powerful way to optimise your finances, but it's important to weigh up all your options carefully. Here's what you need to know — and how EasyStreet can help you make the best move for your future.

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What is Refinancing?

Refinancing simply means replacing your current mortgage with a new one — most often by switching to a new bank or lender that offers better terms, rates, or features. It can also involve negotiating a new deal with your existing lender, but many homeowners find greater benefits by moving to a different bank altogether. Refinancing gives you the chance to reassess your loan structure, take advantage of cashback offers, secure a more competitive interest rate, or access home equity. In short, it's about ensuring your mortgage continues to meet your needs as your financial situation and the market evolve.

Homeowners often refinance to:

• Secure a better interest rate
• Restructure repayments to suit changing life circumstances
• Consolidate debts into one easier-to-manage loan
• Access home equity to renovate, invest, or upsize

Done right, refinancing can save you money, simplify your financial life, or help you reach your next goal faster.

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Why Many Kiwis Are Reviewing Their Mortgages in 2025

1. Cashback Offers:
Several lenders are offering attractive cashbacks to entice borrowers to switch — often around 0.90% of the total loan amount. On larger loans, this can be a significant sum, potentially covering legal costs, giving you a helpful financial boost, or simply easing cashflow. It's a major incentive worth factoring into your refinancing decision.

2. Interest Rates:
Following a period of higher rates, we are now seeing a downward trend in interest rates as inflation pressures ease and the Reserve Bank adjusts its outlook. This movement is creating opportunities for homeowners to secure better deals or review their mortgage structure. With many fixed terms coming up for renewal, it’s a great time to check whether refinancing could put you in a stronger financial position.

3. Debt Consolidation:
With the rising cost of living, many are considering rolling high-interest personal loans, car loans, or credit card debt into their home loan. This can lower monthly repayments and simplify budgeting, although it’s important to weigh up the longer-term interest costs.

4. Restructuring Loans:
Maybe it's time to split your loan between fixed and floating, change your repayment frequency, or shorten your loan term. Restructuring can also include using offset facilities — linking your everyday bank accounts to your mortgage to reduce the interest you pay. With the right structure, you can take greater control over how your money works for you.

5. Accessing Equity:
Property values have remained resilient in many areas. You might have untapped equity that could be used for renovations, buying an investment property, or helping family into their first home.

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Things to Consider Before Refinancing

• Break Costs: If you're currently fixed, you may face a break fee. We'll help you calculate whether refinancing is still worthwhile.
• Legal and Admin Costs: Some banks offer cashbacks to help cover these, but it's important to factor them into your decision.
• Long-Term Value: The lowest rate isn't always the best deal. The right structure and flexibility are just as important.

At EasyStreet, we take all of these factors into account when helping you decide if refinancing is the right move.

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How EasyStreet Can Help

Our expert advisers offer:

• Personalised, obligation-free mortgage reviews
• Access to a wide range of lenders and loan options
• Honest, jargon-free advice tailored to your goals

We work for you — not the banks — ensuring you feel informed, confident, and in control of your choices.

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Is Now the Right Time for You?

With interest rates already trending downward, now could be an excellent opportunity to review your mortgage. Locking in a better structure or accessing a lower rate could set you up for greater financial flexibility in the years ahead.

Whether you're looking to lower repayments, free up cashflow, restructure your loan, or take the next step in your financial journey, refinancing could be a smart move — and EasyStreet is here to make it easy.

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Ready to explore your options?
Book your free mortgage review with EasyStreet today — your financial future could be closer than you think.

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EasyStreet Mortgages
The best move you'll ever make.

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03 352 9533 • hello@easystreet.nz • easystreet.nz

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