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Business lending

Fees

The following are the fees and costs the customer pays on business lending (see the fees and costs the customer pays on home loans). Please note that the customer can agree to different fees and costs in a Loan Agreement or Overdraft Agreement.

Application fee

When the customer applies for a loan or an overdraft, or an increase in an existing loan or overdraft.

0.75% of the loan amount or overdraft limit, or the amount of the increase. Minimum fee $25.

Consent fee

When the customer’s solicitor asks for Kiwibank’s consent to a variation to certificate(s) of title of a property provided as security.

$100 per certificate of title.

Copy of lending documents fee

When the customer asks Kiwibank to provide copies of its lending documents.

$35 per request.

Courier costs

When the customer asks Kiwibank to courier documents to it, either within New Zealand or overseas.

Courier costs associated with delivery of the documents.

Default fee

When Kiwibank demands payment of all amounts outstanding under the customer’s lending because the customer is in default.

$50 per demand.

Discharge of security fee

When the customer asks Kiwibank to discharge or partially discharge its mortgage or security.

$100 per mortgage or security.

Early exit fee

When the customer’s loan is repayable over more than three years and the customer fully repays the loan within three years from the date the customer first draws down the loan.

$250.

e–Value fee

When the customer asks Kiwibank to obtain an e-Value from Quotable Value on its behalf.

$50 per request.

Fixed rate break cost

When the customer repays its entire fixed rate loan early or makes an additional payment which, together with any other additional payments the customer has made, exceeds Kiwibank’s early repayment limit or if the customer switches its fixed rate loan to a variable rate loan or other fixed rate.

The amount of the costs varies depending on the current interest rates and how long the loan has left to run.

Fixed rate lock option

When the customer asks Kiwibank for a fixed rate lock option.

The amount of the fee varies depending on the amount the customer wants to lock in and how long the customer wants to lock it in for. The amount of the fee will be set out in the Fixed Rate Lock Option Agreement.

Insurance demand fee

When Kiwibank pays an insurer premiums that are due on security provided for the customer’s lending.

$50 payment to the insurer.

Investigation fee

When the customer asks Kiwibank to investigate something about the customer’s lending.

$60 per hour. Minimum fee $15.

Lending restructure fee

When the customer asks Kiwibank to change its existing lending. For example:

  • splitting an existing loan;
  • combining existing loans;
  • changing the term or interest only period of an existing loan;
  • changing the type of an existing loan (but not changing an existing loan to a fixed rate loan or refixing an existing fixed rate loan);
  • changing the repayment type on an existing loan from principal and interest to interest only;
  • changing the identity of the borrower; or
  • changing the identity of the guarantor.

$200 per change.

Where Kiwibank is changing multiple existing loans, the fee applies per changed loan.

Lump sum repayment fee

When the customer makes additional payments on its fixed rate loan which exceed Kiwibank’s early repayment limit.

$100 per repayment.

Mortgage priority change fee

When a change is required to the priority amount in the customer’s mortgage.

$100 per change.

Non-utilisation fee

When the customer doesn’t use its entire revolving facility.

Calculated daily at 0.6% p.a. on the difference between the maximum credit limit of the revolving facility and the highest amount outstanding on the revolving facility that day. Charged monthly.

Overdraft fee

What the customer pays to have an overdraft.

0.10% of the overdraft limit per month. Minimum fee $5.

Performance bond/Irrevocable letter of credit establishment fee

When the customer asks Kiwibank to issue a performance bond/irrevocable letter of credit.

1% of the value of the performance bond/irrevocable letter of credit. Minimum fee $25.

Performance bond/Irrevocable letter of credit ongoing fee

What the customer pays to have the performance bond/irrevocable letter of credit.

1% per annum of the value of the performance bond/irrevocable letter of credit. Charged quarterly. Minimum fee $25 per quarter.

Rate fixing fee

When the customer asks Kiwibank to switch its variable rate loan to a fixed rate loan, or refix its fixed rate loan.

$100 per loan.

Rates demand fee

When Kiwibank pays a local authority rates that are due on security provided for the customer’s lending.

$50 per payment to the local authority.

Redocumentation fee

When the customer asks Kiwibank for changes to its lending and/or security documentation prior to drawdown.

$100 per request.

Registration or discharge of caveat fee

When a caveat needs to be registered or discharged over the customer’s property.

$100 per registration or discharge.

Repayment holiday fee

When the customer asks for a repayment holiday.

$75 per request.

Security restructure fee

When the customer asks Kiwibank to change its existing security. For example:

  • changing the identity of the owner of the security; or
  • changing the security.

$200 per request.

Settlement statement fee

When the customer asks Kiwibank to prepare a settlement statement. Doesn't apply if the lending balance is zero.

$50 per request.

Temporary overdraft arrangement fee

When the customer asks for a temporary overdraft or a temporary increase in its overdraft.

0.25% of the overdraft limit, or the amount of the increase. Minimum fee $25.

Urgent discharge fee

When the customer asks Kiwibank to partially or fully discharge a mortgage or security in less than five business days, and where the discharge is required to refinance with another lender.

$50 per request.

Fees effective as at 1 November 2011. Fees subject to change.

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