Cash-Out Refinance Calculator NZ
A cash-out refinance replaces your existing home loan with a larger one so you can take the difference out as cash, and this calculator works out what that costs and whether your bank is likely to approve it. Enter your current home value, mortgage balance, remaining term and interest rate, then add the cash amount you want to release, your new loan term, the new interest rate on offer, and any refinancing costs such as discharge and legal fees. It returns your new loan amount, new monthly repayment, net cash received after costs, and your new loan-to-value ratio (LVR), measured against the 80% limit most NZ banks apply to cash-out refinancing. Below that you get a side-by-side comparison of your current and refinanced mortgage, including repayments and total interest under each, an equity summary, and a breakdown of the total cost of accessing your cash: the extra interest paid over the loan's life plus any upfront fees. Use it to check whether releasing equity for renovations, debt consolidation, an investment deposit or another large expense is affordable, and to see how extending your term or changing your rate affects the true cost of that cash over time. These figures are indicative only, based on standard amortisation and current RBNZ LVR settings; break fees and individual lender criteria are not included, so get advice from a mortgage adviser before refinancing.
1. Your Current Mortgage
2. Your Refinance Plan
Current Mortgage
After Cash-Out Refinance
Equity Summary
Cost of Accessing Cash
How a Cash-Out Refinance Works
A cash-out refinance is when you replace your existing home loan with a new, larger mortgage and receive the difference between the two loan amounts as a lump sum of cash. You are essentially unlocking equity that has built up in your home, whether through paying down your mortgage, rising property values, or both.
For example: your home is worth $750,000 and you owe $450,000. You have $300,000 in equity. If your bank allows you to borrow to 80% LVR (80% of $750,000 = $600,000), you could potentially access up to $150,000 in cash by refinancing to a $600,000 loan. After paying refinancing costs, you receive the net cash to use as you wish.
The Formula Used in This Calculator
Monthly repayments are calculated using the standard mortgage amortisation formula:
Monthly payment = P × r × (1 + r)^n ÷ ((1 + r)^n - 1)
Where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments (term in years multiplied by 12). Total interest is the sum of all payments minus the principal. This is applied separately to your current remaining loan and your proposed new loan.
LVR Limits in New Zealand
The Reserve Bank of New Zealand (RBNZ) sets loan-to-value ratio (LVR) restrictions that banks must follow. As at 2026, most owner-occupier borrowers must retain at least 20% equity, meaning the maximum LVR for a cash-out refinance is typically 80%. Some lenders may offer up to 85% with a low-equity premium (LEP), but this adds cost. Investment properties face tighter LVR limits (generally 65-70% maximum).
Worked Example
Using the default values in this calculator:
| Item | Current mortgage | After cash-out refinance |
|---|---|---|
| Loan amount | $450,000 | $530,000 |
| Interest rate | 6.50% p.a. | 6.20% p.a. |
| Term | 22 years remaining | 30 years |
| Monthly repayment | $3,208 | $3,246 |
| Total interest | $396,972 | $638,591 |
| New LVR | 60.0% | 70.7% |
The cash-out of $80,000 (net $78,000 after $2,000 in costs) comes at a total extra interest cost of approximately $241,619 more over the life of the new loan compared to the current path, plus the refinancing costs. The monthly repayment in this example rises by $38/month due to the larger loan, even though the new rate is lower, because the term is extended to 30 years.
Common Uses for Cash-Out Refinancing
- Home renovation or extension
- Debt consolidation (replacing high-interest debt with lower mortgage rate)
- Investment property deposit
- Education costs
- Emergency fund or large purchase
While a cash-out refinance can be a cost-effective way to access funds (mortgage rates are typically lower than personal loan or credit card rates), it converts unsecured debt into secured debt backed by your home. Always consider the total long-term cost, not just the monthly repayment change.
Refinancing Costs to Budget For
- Discharge fee from current lender: $150 to $300
- Break fee if leaving a fixed rate early: varies widely, can be several thousand dollars
- Legal fees (discharge and new registration): $1,000 to $2,500
- New mortgage registration: approximately $200
- Valuation fee (if required by lender): $500 to $900
- New lender's establishment fee: $0 to $500
Related Calculators
- Mortgage Calculators: all mortgage tools in one place.
- Mortgage Refinance Calculator: compare switching costs and savings on a standard refinance.
- Home Equity Calculator: see how much equity you have in your property.
- Mortgage Repayment Calculator: calculate repayments on any loan amount.
- Loan-to-Value Calculator: check your LVR before approaching a lender.
- Use KiwiSaver for First Home vs Keep Invested Calculator NZ: compare withdrawing KiwiSaver for a first home deposit against leaving.
- Low-Equity Premium (LEM) Cost Calculator NZ: Mortgage Rate Margin.
Sources and method: Standard mortgage amortisation formula (P×r×(1+r)^n / ((1+r)^n - 1)). RBNZ LVR policy: Reserve Bank of New Zealand loan-to-value ratio restrictions (rbnz.govt.nz). Refinancing cost ranges sourced from NZ conveyancing firms and bank published fee schedules, 2026.
This calculator provides indicative estimates only. It does not account for break fees (which may be substantial if you are on a fixed rate), low-equity premiums, or individual lender criteria. Interest rates, costs, and LVR limits change over time. Speak with a mortgage adviser before refinancing.