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

11 August 2025
At Willis Legal, longevity isn’t just measured in years - it’s felt in relationships, remembered in shared milestones, and seen in the steady rhythm of daily practice. Few reflect that spirit more than Lawrence Willis and Janine Blockley , whose decades of service are woven into the fabric of the firm itself. Lawrence Willis Known to many as Lawrie, he is a cornerstone of the Hawke’s Bay legal community - and part of a three-generation legacy at Willis Legal. His family’s long-standing connection to the firm runs deep, reinforcing a personal commitment to its values, evolution, and enduring presence in the region. Lawrie obtained his Bachelor of Laws from Victoria University before joining the family firm then known as Willis Toomey Robinson in 1983. Since becoming a partner in 1989, he has guided the firm through structural and strategic change (the use of personal computers, online property registration and much more), leading Willis Toomey Robinson through mergers with local Hawke’s Bay firms, including Scannell Hardy & Co, Donkin Lloyd (Napier Law), and Taradale Law, and now serving as both partner and owner at Willis Legal. Over the years, he’s seen the pace of legal practice shift dramatically, especially in how we communicate. From fax machines to email, mobile phones, and digital platforms, each advancement has brought greater speed, and with it, greater pressure. Despite all that change, Lawrie says the highlight of his time at Willis Legal has always been the people, both the team and the clients. It’s the relationships, the shared history, and the trust built over time that continue to make the work meaningful. “Legal knowledge gets you to the issue - but it’s experience that guides you through it. Clients want more than technical answers; they want assurance those answers come from someone who’s seen the terrain, understands its patterns, and knows how to lead with confidence and care. We learn from our experiences, good and bad and bring them to play in every decision we make.” Lawrie’s breadth of legal knowledge from his years of practice sees him mentoring younger lawyers on how to navigate practice and the changing legal world, or offering seasoned guidance, and often a shared history, to clients. Janine Blockley Janine joined the firm in 1981 at just sixteen, beginning as an office junior in the accounts department - back when receipts were handwritten in carbon books and the phones lit up like a switchboard. Over the next 44 years, she held roles across departments, from search and registration to reception, and eventually settled into secretarial support. Her story tracks not just the firm’s history - Robinson Toomey & Partners > Willis Toomey Robinson > Willis Legal - but the pace of legal practice itself: from mini cassette tapes to modern cloud-based systems. Through it all, Janine remained constant, supporting teams, remembering clients and family histories, and quietly keeping the engine of the firm humming. “The thing that keeps me here is the staff - they’ve always felt like family. I’m now the longest-standing member and going for the record… if AI doesn’t take my job first!” Together, Lawrie and Janine represent two facets of enduring excellence: one leads with legal depth and strategic foresight, the other sustains culture, continuity, and client connection. In an industry where change is constant, they prove that relevance doesn’t just come from reinvention - it grows from reliability, care, and long-held trust.  At Willis Legal, we’re proud to honour their legacy - and the values it continues to inspire.
30 July 2025
Legal issues can be overwhelming - especially when you’re unsure how to afford the help you need. That’s where Legal Aid comes in. It’s a government-funded programme that helps people access legal advice and representation when they can’t afford it on their own. At its heart, Legal Aid is about fairness: ensuring that everyone has the opportunity to be heard and supported, no matter their financial circumstances. What is Legal Aid? Legal Aid is a grant from the government to assist people who would not otherwise be able to afford legal services pay for a lawyer. Legal Aid is not available for every legal issue - for example, it generally doesn’t cover wills, conveyancing, or commercial disputes - but it can be a vital support for those dealing with serious or stressful situations. At Willis Legal we provide Legal Aid for certain family matters, such as parenting disputes, protection orders and some disputes involving housing or debt. Who can get Legal Aid? Legal Aid is means-tested, which means your income and assets will be assessed to determine whether you qualify. The thresholds vary depending on your circumstances - for example, whether you have dependents or a partner. Even if you earn above the threshold, you may still be eligible for partial Legal Aid, or be asked to repay some of the costs over time, depending on your situation. As of July 2025, a single person with no dependents may qualify if they earn under $28,984 per year, while someone with a partner and two children may qualify if their household income is under $73,608. How do you apply? For family matters, we can help you complete the application. You’ll need to provide: proof of income (eg payslips or benefit statements); details of your assets (eg savings, property, vehicles); and information about your living situation and dependents. Common misconceptions There are a few misunderstandings about Legal Aid that are worth clearing up: It’s not just for criminal cases. Many people don’t realise Legal Aid is available for a wide range of family and civil law matters. It doesn’t mean “free lawyer” in every case. Depending on your financial situation, you may need to repay some or all of your Legal Aid over time. Legal debt may be secured against any property, taken from any proceeds of your case, or you may be required to make weekly repayments, depending on your situation. You can choose your lawyer. If a lawyer is approved to take on Legal Aid work, and agrees to act for you, you can ask for them specifically. You must update your details. If your income or assets change, you need to let Legal Aid Services know - otherwise, your eligibility could be affected. Why experience matters Applying for Legal Aid and working through a legal issue with the support of that system can be complex. That’s why it helps to work with a legal team who understands the process - and can guide you through it clearly, compassionately, and efficiently. At Willis Legal, we’ve supported many clients through the Legal Aid process - and we’re here to make sure you feel informed, empowered, and well-represented every step of the way. Need help? Let’s talk If you think you might qualify for Legal Aid - or you’re unsure where to start - we’re here to help. Our team can walk you through your options and support you in applying. Because everyone deserves access to justice.
23 July 2025
When a relationship ends or circumstances change, untangling shared property can quickly become complex, emotionally, legally, and financially . R elationship property law provides a framework for dividing assets between partners. Whilst it is a legal process, it is also deeply personal. That’s why having an experienced and trusted advisor is essential. What is relationship property? The Property (Relationships) Act 1976 (the Act) governs how property is divided when a marriage, civil union, or de facto relationship ends, including when a partner passes away. In most cases, there is a presumption of a 50/50 split of shared property, but exactly what counts as “shared” can be more involved than people realise. Relationship property can include: the family home; vehicles and household contents; KiwiSaver and superannuation; income earned during the relationship; any assets acquired together; and any relationship debts. There are also important exceptions and nuances, especially if one partner has brought significant assets into the relationship, or if there are children involved. When the 50/50 rule doesn’t apply While equal sharing is the default, there are several situations where the law may allow for a different outcome: relationships of short duration (less than 3 years); significant economic disparity between partners; separate property, such as inheritance or pre-relationship assets (not intermingled); and contracting out agreements (previously known as prenups). Couples can choose to “contract out” of the default rules by signing a formal agreement. However, this must meet strict legal requirements in order to be valid and enforceable. One of these requirements is that both parties must have independent legal advice. When children are involved Children can significantly impact the division of relationship property. The law acknowledges the necessity of protecting a child’s wellbeing, particularly during family transitions. In these situations, the court may: postpone the sale of the family home if it would disrupt a child’s living situation; prioritise stability by ensuring that the primary caregiver can continue to provide a secure environment; acknowledge unpaid contributions, such as caregiving, as equal in value to financial contributions; and apply the Act to relationships of short duration if there’s a child of the relationship. Every family is different and when children are involved, the stakes are higher. That’s why it’s crucial to seek advice that combines legal clarity with compassion and care. Every situation is different While the law provides a general framework, no two families or relationships are exactly alike. That’s why having thoughtful and experienced legal support makes all the difference. Whether you're entering into a new relationship, separating, or simply planning for the future, clear advice from someone who understands the legal landscape and your personal one is essential. Why legacy matters Willis Legal has been advising Hawke’s Bay families for generations. That long history means we don’t just know the law, but also the community. We approach every situation with perspective, stability, and a practical mindset. Our clients trust us not only to get the paperwork right, but also to help them move forward with clarity and confidence. If you’re facing a separation, starting a new relationship, or looking to secure your future our team is here to help you understand your options in a way that works for you. Book a confidential consultation with us today and take the first step toward peace of mind.
Show More