A Guide to Understanding Mortgages and Refinancing
22 September 2024

What is a mortgage?



A mortgage is a loan specifically designed for purchasing real estate. It involves borrowing money from a lender, typically a bank, to buy a property. The property itself serves as collateral for the loan, meaning the lender can take possession of it if the borrower fails to repay the loan as agreed. Mortgages are usually repaid over a long period, often 25 years, through regular monthly, or fortnightly, payments.

How we help with mortgages


Navigating the mortgage process can be complex, but we are here to assist you every step of the way:

  1. Receive loan documentation: We will check all necessary loan documents from your lender to ensure everything is in order.
  2. Meet with you to execute the required documents: We will arrange a meeting to go over and sign all the necessary paperwork.
  3. Arrange drawdown of your lending: We will coordinate with your lender to ensure the funds are released at the appropriate time.
  4. Register new mortgage: We will handle the registration of your new mortgage with Land Information New Zealand (LINZ), ensuring all legal requirements are met.


What is a priority sum?

A priority sum is an amount specified in the mortgage that takes precedence over other claims or charges on the property. It ensures that the lender has the first claim on the property up to the specified amount in case of default.


Costs involved in a mortgage

When taking out a mortgage, several costs may be incurred, including:

  • Application fees: Charges for processing your mortgage application.
  • Registration fees: Costs associated with registering the new mortgage with LINZ.
  • Legal costs: Fees for legal services provided during the mortgage process.

 

What is refinancing?

Refinancing involves replacing your existing mortgage with a new one, typically to take advantage of better interest rates, change the loan term, or access equity in your property. This process can help reduce your payments, shorten the loan term, or provide funds for other financial needs.


How we help with refinancing

Once you have made arrangements with your new lender, we assist with the following steps:

  1. Receive loan instructions: We will obtain the necessary instructions from your lender.
  2. Meet with you to execute the required documents: We will arrange a meeting to sign all the necessary refinancing documents.
  3. Arrange discharge of your existing security: We will coordinate the release of your current mortgage.
  4. Handle the drawdown of the new lending: We will ensure the funds from your new loan are properly disbursed.
  5. Take care of the repayment of your existing mortgage: We will handle the repayment of your current mortgage with the funds from the new loan.
  6. Register the discharge and new mortgage: We will manage the registration of the discharge of your old mortgage and the new mortgage with LINZ.


Costs involved in refinancing

Refinancing can involve several costs, such as:

  • Early repayment fees: Penalties for paying off your existing mortgage early, if applicable.
  • Release fees: Charges from your existing bank for releasing the current mortgage.
  • Application fees: Charges for processing your new mortgage application.
  • Registration fees: Costs for registering the discharge and new mortgage with LINZ.
  • Legal costs: Fees for legal services provided during the refinancing process.


By understanding the mortgage and refinancing processes and the associated costs, you can make informed decisions that best suit your financial needs and goals. We’re here to guide you through each step, ensuring a smooth and efficient experience.


Join our Newsletter

Stay tuned

Contact Us

Just Fund
3 March 2026
If you’re navigating a separation and would like to understand whether this option could help, our team is here to talk it through.
Marta Black
4 February 2026
We’re pleased to shine a light on Marta Black, an Associate in our Dispute Resolution team. Since joining Willis Legal in 2022, Marta has become a valued member of our Dispute Resolution team. She is known for her calm, thoughtful approach, and her ability to bring clarity to even the most complex disputes. Marta works across a wide range of civil litigation, with a particular focus on contentious trust matters and complex relationship property disputes. These areas often involve significant assets and sensitive family dynamics, and Marta is recognised for the steady guidance she brings to her clients throughout the process. Marta appears regularly in the range of courts in the civil jurisdiction. Before entering practice, she worked as a Judge’s Clerk at the High Court. That experience gave her a strong foundation in legal analysis and a close understanding of how complex decisions are made, something that continues to shape her work today.  When asked what motivates her, Marta says she is driven by the challenge of providing accurate, timely, and practical advice. She enjoys the intellectual side of litigation and the satisfaction of solving difficult problems. “ I enjoy a complex puzzle and looking at a problem from all angles to find a solution that delivers results for our clients ,” she says. That mindset has seen her navigate some memorable matters, including acting in a contentious company dispute involving prejudice to shareholders, which ultimately led to a formal proof hearing in related relationship property proceedings. Another standout was a six‑week breach of contract trial in Auckland. It was hard‑fought, strategically demanding, and ultimately successful. Outside work, Marta enjoys the best of Hawke’s Bay life. She loves spending time with her young family and their two beagles, heading to the beach, and embracing her new hobby of camping (or glamping, as she admits with a smile). When asked what she finds most rewarding about her role, her answer is simple: “ Interesting work, with good people .”
28 January 2026
Why it’s worth reviewing your will, trust and Enduring Powers of Attorney
Show More