High LVR Refinance: Tracy Saves Thousands

Refinancing your mortgage above 80% LVR (Loan-to-Value Ratio) is possible. For many homeowners, it can lead to significant interest savings and better mortgage terms.

Every dollar saved in interest can go directly toward reducing your mortgage balance and bringing you one step closer to becoming mortgage-free.

Here is the real story of our client Tracy, who approached Smartmortgages.co.nz Limited for assistance with refinancing her high-LVR mortgage, and her experience working with Mortgage Adviser, Cong Nguyen.

Q: Tracy, can you tell us about your mortgage situation when you first contacted us?

Tracy: I bought my owner-occupied home in 2021 with a 10% deposit. For the following three years, I had been paying higher interest rates because the bank added a 0.75% Low Equity Margin (LEM) on top of the standard home loan rate.

Because of this, most of my repayments were going toward interest rather than reducing the principal. Each year, my loan balance only decreased by just over $10,000, which wasn’t the financial progress I wanted.

My goal has always been to become mortgage-free as soon as possible.

Q: How did you learn that high-LVR refinancing was possible?

Tracy: Honestly, I didn’t know it was an option until I spoke with Cong. After understanding my situation, he negotiated with several lenders and came back with a competitive offer.

In November 2025, he secured a 2-year fixed rate of 4.89%, even though my LVR was still close to 90%.

The offer also included: $3,750 cashback and lender-provided legal service (no legal costs for me)

Q: How much interest did you save?

Tracy: If I had stayed with my existing bank, my rate would have been 5.20%.

By refinancing to 4.89%, the 0.31% reduction saved me almost $5,000 in interest over the two-year fixed term, based on my loan balance at the time.

On top of that, I paid no legal costs, and I received a cash contribution from the new bank, which was an amazing result.

Q: You mentioned there were no legal fees. How did the refinancing process work?

Tracy: After the loan was approved unconditionally, Cong arranged an appointment for me at the lender’s local branch to complete the onboarding.

The loan documents were issued through an online portal, where I could review and sign digitally.

My Mortgage Adviser then coordinated the rest of the process with the lender, and the refinance was completed smoothly on the day my previous fixed rate expired.

Q: What was your overall experience?

Tracy: It was much more straightforward than I expected. Communication was excellent, and I was kept informed throughout the entire process.

What I appreciate most is that I now know there are solutions available for high-LVR borrowers. Since then, I’ve encouraged several friends to speak with Cong because, like me, they could potentially save thousands of dollars.

Thanks for sharing, Tracy. 

Disclaimer: This case study is provided for illustrative purposes only. Each mortgage application is assessed individually and subject to lender criteria and approval. Interest rates, cashback offers, and lending policies may change over time.