First Rate Mortgages



Topping up your home loan, or using the equity in your property, is often necessary when making home improvements, buying a business or investment property, helping with large family expenses, healthcare, buying a new car, debt consolidation, or travel costs. Did you also know that you can get up to $20,000 as a cash back if you refinance to another Bank offering you better terms or interest rates? If you are looking at a mortgage top up or to refinance your mortgage in NZ, talk to an expert financial adviser at First Rate Mortgages Ltd.   

A top up means you are adding to your current mortgage, so you need to understand the current structure of your existing loan and any fees that may apply. Our team is here to offer financial advice to help evaluate the existing loan, loan term, interest rate and to look at what other Banks can offer such as a cash back incentive to attract new business. We would also look at the cost of any legal fees or break fees associated with topping up or refinancing your mortgage, assessing the equity in your home, and helping to advise the best loan solution for you.   

A number of new clients are currently approaching us for advice on cash backs or cash contributions. This is money a new Bank will pay as a sweetener to assist you meet the costs of refinancing or buying a home. This can be up to 1% of the mortgage amount so a $1.5m home loan could have up to $15,000 paid to you!

This would cover your legal costs, possibly a valuation and some money for a car, holiday or to even pay off a credit card. The amount available varies from Bank to Bank, however the cash back is usually limited to a maximum of $20,000. 

What’s the catch?
The Bank will need a form signed that locks you in for up to 3 years. If you repay your loan early, as you sell your home or refinance to another bank, they can ask for the full cash contribution back. In some instances, this is on a pro rata basis, so it reduces over the 3 years. We will make sure you understand how this works.

Cash Backs or Cash Contributions are subject to changes and normal Bank terms and conditions. 

There are many components to consider when topping up or refinancing your mortgage in NZ, not just a cash back. There are times a Bank will not assist as they feel you have insufficient equity, income is too low, excessive credit card spending or poor repayment history. In these cases, a second mortgage or a full refinance to a second tier or non bank lender may be a good idea and the best option to consider.

Unfortunately the cash contributions are only paid by Bank lenders not Non Bank Lenders.

If you think you need to refinance your mortgage, consolidate debt or top up your home loan to access the equity, talk to the team at First Rate Mortgages today.