Offset mortgage
Variable
Save thousands and take years off your mortgage. Offset the balance of your savings and everyday accounts against your mortgage – and only pay interest on the difference.
How it works
- Take the balance of your mortgage
- Subtract the balance of your savings and everyday accounts
- Only pay interest on the difference.
At 5.50% p.a. (compared to our standard variable rate of 5.65% p.a.), you’d save $32,000 in interest over the life of a 25–year loan – and take two years and three months off your mortgage. Because you’re paying interest on less of your loan, that’s an effective interest rate of 5.23% p.a.!
| Features | Benefits |
|---|---|
| The more savings you have, the lower your effective interest rate becomes | Because you’re only paying interest on part of your mortgage, your effective interest rate is even lower. In our example above, you’d be paying interest at an effective rate of 5.23% p.a. |
| Link up to eight Kiwibank accounts | The more you offset, the more you save. You can link all our savings and everyday accounts (but not term deposits, KiwiSaver or PIE funds like Notice Saver). |
| Link accounts from other members of the family | You can also link accounts from your partner (marriage, civil union or de facto), parents or children. |
| Use your linked accounts as usual | Interest is calculated daily, so the more you have in your accounts day-to-day, the more you’ll save. Your money is still yours – no locking away your savings or limiting withdrawals on your everyday accounts. |
| Make lump sum repayments anytime | Because it’s a variable rate mortgage, you can make lump sum repayments anytime – without paying a fee*. |
| No credit interest on your linked accounts | The interest you pay on your mortgage will generally be higher than the interest you earn on your savings. Since your linked accounts won’t be earning credit interest, you won’t have to pay withholding tax on them. |
| Flat fee per month | You’ll pay a flat $10 a month for your offset mortgage. There’s also a $250 application fee. |
Looking for something else? Check out our other Kiwibank Home loan rates.
Questions? Check out our FAQs.
Switch to us
Switching to us is easy – sign a transfer form, and we’ll take care of moving all your accounts and regular payments. And, with our refinancing package, we’ll cover your legal fees#, too. Not to mention, our home loans are guaranteed to save you money+.
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Conditions
Offset Mortgage is not available to companies, trusts or sole traders. Offset Mortgage is available on (1) a nominated variable rate table home loan of an individual, or of two individuals (including joint accounts) who are either married, in a civil union, or in a de facto relationship; and (2) up to eight nominated savings and everyday accounts of that individual or those individuals, and/or of the children or parents of that individual or one of those individuals. A customer may have more than one Offset Mortgage.
* When your home loan is repayable over more than three years and you fully repay your loan within three years from the date you first drawdown your loan, there’s a fee of $250. This doesn’t apply if you’re taking up a new loan with Kiwibank, or if your loan is being repaid in full and isn’t being refinanced with another lender.
# The refinancing package is free if your loan is over $50,000, less than 80% of the market value of the residential properties provided as security, transferred to Kiwibank without changing who owns the properties and secured by no more than two securities, if the refinancing documentation is not signed under a power of attorney and if the refinancing does not form part of a series of same day transactions. If you are using an apartment, townhouse or leasehold property as your security, you will need to obtain (and pay for) a registered valuation. The refinancing package is not available for business banking purposes.
+ Kiwibank Home Loans are guaranteed to save you money on the overall cost of your home loan over the first six years compared with any equivalent home loan from the other big banks. Or we’ll beat the difference. The other big banks are ANZ, ASB (excluding BankDirect), BNZ and Westpac. The comparison must be with a home loan available to you and similar members of the general public and be based on identical patterns of use.