Changing banks home loan mortgage

Switching Banks

Checklist: Switching

When you switch banks and refinance with another lender, you’ll need to provide much of the same information you did the first time around. Our handy checklist will help you transition with ease.

Lending Facilities

Understanding your lending facilities is a crucial step on your path to refinancing your home loan.

☐ Do you understand the features of the home lending products on offer with your new bank?

☐ Have you read the terms and conditions for your new home loan offer and understood all the applicable fees (fees could relate to the home loans, ongoing account maintenance and service fees for your new home loan product and bank accounts)?

☐ Have you engaged with your current bank to work out how much it will cost to repay all facilities including accrued interest and fees?

☐ Will your new bank offer you a cash contribution for moving your banking to them? Do you understand the terms and conditions of accepting the cash contribution offer?

☐ If your current bank offered a cash contribution, does it need to be repaid if you’re refinancing within the claw back period?

Documents you’ll need

Make sure you have the following documents on hand. Your new bank may ask to see them.

☐ Certified copies of your ID (NZ driver’s license or valid passport)

☐ Confirmation of your address. A recent (within the last 3 months) utility bill with your full name and address will work.

☐ Last 3 months of bank statements

☐ Last 6 months of credit card, home loan and any other loan statements you may have. This includes store cards.

☐ Three most recent pay slips or the last 2 years IRD summary of earnings

☐ Full and signed business financials if you’re a business owner or self-employed.

☐ Copies of trust deeds and all deeds of variation related to the trust (if purchasing under trust)

☐ The lender may also request a registered valuation for one or several of the properties you own

Your other banking requirements

What are your day-to-day banking needs? Think about what you might need to switch over.

☐ Will you keep any banking services with your old bank or do you plan to move everything to the new one?

☐ Does your new bank offer all the banking services you want such as credit cards and savings accounts, and do you understand the terms and conditions, (including fees) relating to those services?

☐ Does your employer / payroll team have the new account number so they can credit your income?

☐ Have you updated recurring, automatic and bill payments, and any other regular services with your new account number? Most banks have a dedicated switching team who can help manage this process for you.

Finally, review your other important documents

When you refinance, take the opportunity to look over your existing policies as your circumstances may have changed since you last reviewed them.

☐ Insurances including life, contents, and home. It’s worth looking at your policies and getting new quotes to cover yourself and your assets.

☐ Your will. Has anything changed significantly since you last reviewed it? Your solicitor can help.

☐ Budgets. New rates may impact your budgeting plan, so have a look to see what you might need to change, or seek assistance from a financial adviser