Whether it is your mortgage refinance, a loan repayment or debt consolation, our Auckland lawyers understand that refinancing transactions are diverse.
Mortgage refinancing means paying off an existing mortgage or loan and replacing it with a new mortgage. There are many common reasons why New Zealand property owners refinance a loan.
What are the common reasons why New Zealand property owners refinance a loan?
- The opportunity to obtain a lower interest rate;
- The chance to shorten the term of their mortgage;
- The desire to convert from a floating interest rate mortgage to a fixed interest rate mortgage, or vice versa;
- The opportunity to tap a home’s equity in order to finance a large purchase;
- The desire to consolidate debt.
Some of these reasons may have positive and / or negative implications so professional financial advice is always recommended.
Debt restructuring or debt consolidation.
If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring or debt consolidation.
For more information on your loan or mortgage refinance transaction please contact one of our Auckland lawyers at Quay Law NZ.