Refinancing is replacing an existing mortgage with a new one often with a different bank or on better terms, or to release equity. The old loan is settled and a new mortgage is registered against the property.
Where you’ll see it
You’ll consider refinancing to reduce the interest rate, change the term, or raise additional funds against the property’s value. It involves settling the current mortgage, a fresh valuation and approval, and registering the new mortgage at the DLD.
Why it matters
Refinancing can lower repayments or unlock equity, but it has costs early settlement of the old loan, new registration fees, and valuation. Weighing the savings against these costs is what determines whether refinancing actually pays.
What it is not
Refinancing is not the same as a simple rate review with the existing bank, and it is not a top-up alone it replaces the loan. It also is not free; the switching costs need to be accounted for.
Example
An owner refinances to a lower rate: the new bank’s loan settles the old mortgage, the original charge is released, and a new mortgage is registered, reducing the monthly repayment.
Connected documents and parties
New mortgage offer, settlement letter, valuation, registration; borrower, old and new banks, DLD.
Going deeper: related reading: early settlement and mortgage registration.
Related Terms
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Last reviewed: June 2026