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.


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20 September 2026
He taonga to mokopuna, kia whāngaia, kia tipu, kia rea - a child is a treasure, to be nurtured, to grow, to flourish. A common thing we hear from clients is "I want custody of my children." While most people understand what "custody" means, the reality is that custody is no longer a legal term used in New Zealand family law. In fact, the term was removed from our legislation more than 20 years ago. So, what changed? The Care of Children Act 2004 replaced the old concepts of "custody" and "access" with language that focuses more directly on children's needs and parental responsibilities. Instead of talking about custody, the Family Court now talks about: Day-to-day care (who the child lives with and who looks after them on a daily basis); and Contact (the time a child spends with a parent or other important person when they are not in that person's care). The change was intentional. The law moved away from language that can sound like a child is something to be "owned" or "won" by one parent. What does "day-to-day care" mean? Day-to-day care refers to the practical care of a child, including: Where the child lives; Their daily routine; School attendance; Meals, bedtime, and general supervision; and The everyday decisions involved in raising them. A parent can have: Sole day-to-day care; or Shared day-to-day care arrangements. There is no legal presumption that one parent should have day-to-day care over the other. The Court's focus is always on what is in the child's welfare and best interests. What about "contact"? What many people previously called "access" is now referred to as contact . Contact can take many forms, including: Weekend visits; School holiday time; Telephone calls; Video calls; Supervised contact; or Other arrangements that allow a child to maintain a relationship with an important person. The Court recognises that children generally benefit from having ongoing relationships with both parents, provided doing so is safe and in their best interests. Does this mean I can't say "custody"? Not at all. Many people still use terms like "custody," "shared custody," and "access" in everyday conversation, and most lawyers will understand exactly what you mean. However, if you're involved in Family Court proceedings, you'll hear terms such as: Day-to-day care Contact Guardianship Parenting orders These are the legal concepts that will appear in Court documents and orders. Why does the language matter? The shift away from "custody" reflects a broader change in how New Zealand family law views parenting after separation. Rather than focusing on which parent "gets" the child, the law focuses on: The child's welfare and best interests; Maintaining important relationships; Encouraging parents to work together where possible; and Ensuring children are protected from harm. Ultimately, Family Court decisions are not about determining a "winner" and a "loser." They are about creating arrangements that best support the child's wellbeing. As family lawyers , we offer advice, guidance and representation in family law matters, if you would like assistance or to talk to someone, contact us today. Written by: Eva Leutele
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