What's a Top-Up?
Adding to your existing mortgage without changing lenders.
A top-up is when you borrow a little more on your existing mortgage. It's added to your loan balance, usually under a new fixed term or floating rate.
Best for:
• Renovations or upgrades
• Helping family
• One-off costs (e.g. business, travel, emergencies)
It's quick, uses your existing bank, and doesn't usually require a full restructure. Learn how much extra you might be able to borrow.
Top-ups are often the fastest way to access your equity for smaller amounts.
What's a Refinance?
A complete restructure of your mortgage setup.
Refinancing means switching your mortgage to a new setup — either with your current bank or a different one. This often includes:
• Paying off your existing loan
• Creating a new loan structure
• Negotiating better rates or terms
Best for:
• Restructuring debt
• Investing in property
• Switching banks for better deals
• Fixing poor lending setups from the past
Refinancing can be more work upfront but often leads to better long-term outcomes.
Key Differences
Understanding what sets these options apart.
Top-Up
• Stays with current lender
• Faster, less admin
• Good for smaller amounts
Refinance
• May involve switching lenders
• Can unlock better rates/terms
• Better for major restructuring
Consumer NZ's guide to refinancing can help you understand the process better.
Sometimes combining both approaches — a top-up now and refinance later — can be the smartest strategy.
How Do You Choose?
Finding the right approach for your situation.
The right choice depends on:
• Your goals
• How much you need to borrow
• Whether your current lender is offering good terms
Check current mortgage rates on the Reserve Bank website to compare what's available.
Sometimes we even combine both — a partial top-up now, refinance later.
Consider both immediate needs and long-term financial goals when deciding.
What About Break Fees?
Understanding the potential costs involved.
If you're locked into a fixed rate, there may be break fees. Learn more about managing break fees.
A good adviser will run the numbers and help you decide if it's still worth it.
Sorted's mortgage guide has helpful calculators to estimate costs.
Sometimes paying break fees can still be worth it if you're getting significantly better terms.
Not Sure Which Option Is Right?
Let's run the numbers and find the best approach for your situation.
I'll help you compare options and create a strategy that works for your goals.
Keep up with the latest mortgage updates:
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