The Ultimate Guide to Refinancing Your Home Loan in New Zealand

If you’re planning to buy a home in Hamilton or anywhere in the Waikato region, one of the first questions you’ll ask is: How much can I borrow for a mortgage? It’s a big decision, and the answer depends on a few key things — your income, your expenses, your deposit, and even your credit score.

What Affects How Much You Can Borrow for a Mortgage?

Income, Expenses, and Credit Score

Your income is the starting point. Lenders want to know how much you earn — and how stable that income is. If you’re employed full-time, that’s fairly straightforward. If you’re self-employed or your income varies, they’ll look more closely at your financial history to understand your earning patterns.

But income is only part of the picture. Your existing debts also play a big role. Credit cards, car loans, and other personal loans can all affect how much you’re able to borrow. Lenders consider your total financial commitments to make sure you can comfortably manage a mortgage on top of them. Keeping your debt under control shows you can handle repayments responsibly, which strengthens your application.

Deposit Size and LVR (Loan-to-Value Ratio)

Your deposit is the amount of money you put toward the purchase upfront. In New Zealand, most lenders prefer a deposit of at least 20%. But there are options for lower deposits — especially for first-home buyers. You may be able to get a loan with a deposit from as little as 5%.

How Do Banks and Brokers Assess How Much You Can Borrow for a Mortgage?

Bank Assessments

When you apply directly with a bank, they’ll use their own calculator to work out how much you could borrow. They look at:

Income – not just how much you earn, but how stable it is (salary, self-employed income, or contract work).
Expenses – your everyday living costs such as food, transport, insurance, and utilities.
Debts – things like credit cards, car loans, personal loans, Afterpay, or store finance. Even small limits on unused credit cards are counted.
Deposit – how much you’ve saved or built up through KiwiSaver or other sources.

On top of that, banks apply a test (or “stress”) interest rate, which is higher than the current rate. This is to check whether you could still afford repayments if interest rates rise in the future.

Broker Assessments

Mortgage brokers, like Andre Stokes here in Hamilton, take a wider view. Instead of relying on just one bank’s criteria, brokers work with multiple lenders — each with their own calculators and lending rules. This means:

You’ll often have a better chance of approval if one bank says “no.”
You can compare borrowing amounts across lenders.
You’re more likely to find a solution that fits your income, debt, and goals.

Brokers also help you present your application in the best light — especially if you’re self-employed, have variable income, or already have existing debts.

Borrow for a Mortgage in Waikato: What’s Typical?

Waikato Property Prices

Property values across the Waikato Region can vary considerably, depending on the location:

Hamilton City: The average house price as of June 2025 is approximately NZ$788,171, according to CoreLogic data compiled by Opes Partners.
Waikato Region Overall: Median prices hover around NZ$735,000 as of June 2025, having surged from about NZ$340,000 a decade earlier.
Te Kūiti (Waitomo District): This remains one of the most affordable areas in the region. The average house value stands at NZ$392,550,

This underscores a substantial price range—from Te Kūiti’s mid-$300k to Hamilton’s upper-$700k—highlighting how location plays a pivotal role in affordability for buyers.

First-Home Buyers in Waikato

If you’re taking your first steps onto the property ladder, you may have access to several helpful schemes:

1. KiwiSaver First-Home Withdrawal

After contributing to KiwiSaver (or a complying super fund) for at least three years, you may be able to withdraw most of your savings—including member contributions, employer contributions, government contributions, and investment earnings—to help with your first home purchase.

You must leave a minimum of NZ$1,000 in your KiwiSaver account, and not all funds are withdrawable (e.g., Australian super transfers and certain government kick-start amounts may be excluded).

Withdrawals are restricted to a property you intend to live in—this cannot be used to purchase investment properties.
Check out the IRD website for more information

2. Kāinga Ora First-Home Loan

With this option, you can secure a home loan with a deposit as low as 5%, thanks to Kāinga Ora underwriting the remainder of the deposit risk for participating lenders.
Kāinga Ora – Homes and Communities

Eligibility criteria include being a first-home buyer (or a previous owner in a similar financial place as a first-home buyer), meeting maximum income thresholds (e.g., <$95,000 for individuals without dependants or <$150,000 combined for co-buyers), and purchasing a home you intend to live in.

The loan includes a 1.2% Lender’s Mortgage Insurance (LMI) premium, payable upfront or added to the loan balance.

Tips to Increase How Much You Can Borrow for a Mortgage

Reduce Your Debt
Banks look closely at your existing debt, such as credit cards, personal loans, and car finance. Paying these down (or closing unused credit facilities) lowers your monthly commitments, which can free up more borrowing power.
Increase Your Deposit
The bigger your deposit, the less risk the lender takes on. This can not only increase how much you’re able to borrow but may also give you access to better interest rates and more lenders.
Improve Your Credit Score
Your credit history shows lenders how reliable you are with money. Paying bills on time, avoiding missed payments, and keeping debt levels manageable can strengthen your application and make banks more willing to lend.
Use a Broker
Mortgage brokers have access to a wide range of lenders and know the different borrowing criteria. They can help present your situation in the best possible way and find a lender who’s more likely to offer you the maximum amount.

Contact Andre for a Personalised Borrowing Assessment

Every buyer is different. Your income, deposit, and goals all affect how much you can borrow for a mortgage. Andre Stokes is a local mortgage broker based in Hamilton. He knows the Waikato market and works with a range of lenders.

Ready to find out how much you can borrow? Contact Andre today for a free, personalised borrowing assessment.

Refinancing your home loan is a big decision that could save you money and help you reach your financial goals sooner. Whether you want to get a better interest rate, access your home’s equity, or shorten your loan term, refinancing can be a smart move. However, understanding the process is important to make the right choice for your situation. Let’s break down everything you need to know about refinancing your home loan in New Zealand and how Andre Stokes Mortgage and Insurance can help.

What Is Refinancing and Why Should You Consider It?

Refinancing is when you take out a new loan to replace your existing mortgage. This might sound complicated, but it can bring many benefits. One of the main reasons Kiwis refinance is to get a lower interest rate, which can save you money over the life of your loan. Even a small decrease in your interest rate can make a big difference. You might also refinance to access equity in your home for renovations, investments, or other financial needs. Another common reason is to shorten the loan term, allowing you to pay off your mortgage faster. It’s important to understand why you’re refinancing to make sure it aligns with your goals.

When Is the Right Time to Refinance?

Knowing when to refinance your home loan can help you make the most of your financial situation. A good time to refinance might be when interest rates drop significantly compared to when you first got your loan. Lower rates mean you can pay less interest, freeing up money for other things. If your financial situation has improved, like an increase in your income, you might qualify for better loan terms. Another reason to refinance could be if your home’s value has increased, giving you more equity to use. Before deciding, think about your goals and whether refinancing helps you achieve them.

The Refinancing Process: Step by Step

Refinancing might seem tricky, but understanding the steps can make it easier. Here’s how the process typically works:

1. Review Your Current Loan: Start by reviewing your existing home loan to understand your current interest rate, loan term, and monthly repayments. Knowing these details helps you see what you could improve by refinancing.

2. Compare Loan Options: Next, research different loan options or speak to a mortgage broker like Andre Stokes. He can help you find the best rates and terms based on your needs. It’s important to compare multiple lenders to ensure you’re getting the best deal possible.

3. Get a Property Valuation: Many lenders will require an updated valuation of your property. This step helps determine how much equity you have in your home, which can affect your loan options.

4. Apply for Refinancing: Once you’ve chosen a lender and loan, it’s time to apply. You’ll need to provide documents like proof of income, expenses, and details about your existing mortgage. Andre Stokes can guide you through the paperwork and make the process straightforward.

5. Settle the Loan: After your application is approved, your new lender will pay off your existing loan, and you’ll start making payments under the new terms. Make sure you understand your new repayment schedule to stay on track.

Common Mistakes to Avoid When Refinancing

Refinancing can bring many benefits, but there are common mistakes to avoid. One of the biggest mistakes is not comparing enough lenders. Many Kiwis stick with their current bank without exploring other options. However, other lenders might offer better rates or more suitable terms. It pays to shop around!

Another mistake is ignoring the costs associated with refinancing. Sometimes, you might need to pay break fees for ending your current loan early. There can also be application fees, valuation fees, and legal costs. It’s important to weigh these costs against the potential savings to make sure refinancing is worth it for you.

Finally, some homeowners don’t think about how the new loan term aligns with their long-term goals. For example, if you extend your loan term to lower your repayments, you might end up paying more interest over time. Always check that your new loan matches your future plans, whether that’s paying off your mortgage sooner or saving money on repayments.

Why Choose Andre Stokes Mortgage and Insurance NZ for Your Refinancing Needs?

Choosing the right partner for your refinancing journey can make all the difference. Andre Stokes Mortgage and Insurance NZ offers expert advice tailored to your situation. We understand that no two homeowners are the same, so we provide personalised solutions to help you achieve your financial goals. Our local expertise in the Waikato region means we know the market well and can find the best options for you.

When you work with us, you’ll get a dedicated mortgage broker who will guide you through every step. We handle the research, paperwork, and negotiation to ensure the process is smooth and stress-free. Our aim is to make refinancing easy and beneficial for you. Plus, we have strong relationships with a wide range of lenders, so we can find options that fit your needs perfectly.

Frequently Asked Questions About Refinancing

1. How Much Can I Save by Refinancing My Home Loan? The amount you can save depends on several factors, including the difference in interest rates and your loan balance. Even a small decrease in your interest rate can lead to significant savings over the life of your loan. Our mortgage expert can calculate potential savings and show you how refinancing might benefit you.

2. What Documents Do I Need for Refinancing? You’ll need to provide documents like your most recent payslips, bank statements, and details about your current mortgage. If you’re self-employed, additional financial records may be required. We can help you gather the necessary paperwork and make sure everything is in order before applying.

3. Is There a Risk Involved in Refinancing? Refinancing is generally safe, but there are costs and risks to consider. For instance, you may need to pay break fees if you end your current loan early. Additionally, if property values fall, you could lose equity. We assess these risks with you and ensure you make an informed decision.

Conclusion

Refinancing your home loan can offer significant financial benefits, but it’s important to have the right guidance to make informed decisions. With Andre Stokes Mortgage and Insurance, he’s here to help you every step of the way. He provides expert advice, tailored solutions, and a smooth process to ensure refinancing is a positive experience for you.

Ready to start your refinancing journey? for a free, no-obligation consultation and find out how much you could save!