1. First up, you need to figure out if you're outside of cashback clawback. Have you been with your bank for longer than 3-4 years? Then you're most likely free to refinance without paying the bank back.

2. Break fees costs need to be requested (from your current lender) for any fixed tranches that are not expiring. You can break a fixed tranche whenever you like, so it’s often just a matter of maths as to whether it’s worth it, or worth waiting. The bank will give you the actual value, but here is how you run a quick estimate:

   1. ~(Locked in interest rate - Current interest rate) x Loan amount x Number of years still locked in

3. Then depending on your approach:

   1. If going direct to bank: apply directly to the new lender of your choice, who will need to run through a full application (just like you did when buying the house originally)

   2. If using a broker: they'll analyse the various lenders out there, determine which would accept you, and lay out the pros and cons. Then after picking either one, or multiple, they submit applications on you behalf.

4. You are then looking at two immediate things in order to evaluate the financial benefits of changing lender:

   1. Firstly: If you can access cheaper rates. Even if you don’t ultimately change lender, it might provide a useful bargaining chip in accessing cheaper rates.

   2. Secondly: What sort of cashback you could get from changing. 0.9% on your loan value is a good starting point (but your situation may vary).

5. Consider how the products (types of loans, and the ways they can be customised for you) best suite you. While in most cases they are fairly similar across lenders, but there are differences in how you can make early principal payments in particular. Or the availability of offset or revolver accounts.

6. It’s important to then factor in legal costs of refinancing. Lawyers we work with are approx $1,100 incl GST, though Kiwibank have a free refinancing service which saves you that! Bear in mind that the Kiwibank service is quite finicky and can take longer than normal, so I wouldn’t suggest using it if you’re in a hurry.

7. Then finally there is a ‘settlement day’ of sorts, where your loan is moved from one lender to another. It’s like when you brought the house, except you don’t have to pick up the keys, setup your broadband for the first time, or get movers.

Generally speaking, moving your lending doesn’t required you to completely change all your other banking. Though depending on your cashback offer, moving your main source of income (or for an investment property, for the rent to be paid there) into the new lender is often required to get the max cashback. Interestingly BNZ has just launched a switching service to help you move automatic payments over.