How it works
You sign up to pay a set interest rate for a fixed amount of time.
Your repayments depend on the amount and term of your loan, and the interest rate you’re paying.
Even if interest rates go up, you’ll continue to pay your fixed rate until the end of the term. But remember it goes the other way too - if interest rates start dropping, or if your circumstances change, you’ll still be locked into the fixed rate and payments until your chosen term ends.
If you structure your loan with different parts on different terms, each part will have a different repayment plan.
It costs $100 each time you fix some or all of your loan, and you may have to pay a fixed rate break cost if you break the fixed term early.
You can make extra repayments of up to 5% of your total loan balance in any calendar year.
You can do this by:
increasing your regular repayments, or
making lump sum payments.
If you pay off more than 5% extra, you’ll be charged a lump sum repayment fee, and potentially also a fixed rate break cost.
If you want the option to make extra repayments, you might be better to keep part of your loan on a variable rate — you can make extra repayments on this part whenever you like.
To make an extra payment or change your regular payments, call 0800 000 654, 8am to 6pm Monday to Friday.
When the fixed term is up
When the fixed term is up, you can:
re-fix that part of your loan at the current interest rates
change that part of your loan to variable or offset.
If you don’t do anything, the fixed part will automatically roll onto the variable interest rate when the term is up.
Breaking a fixed rate term
If you want to break a fixed rate loan before the term is up, you might have to pay a break cost. This includes:
More about break costs
breaking your term to take advantage of a better interest rate
paying off your loan early
making extra repayments over the 5% limit.
Best for people who:
budget with certainty about what their repayments will be
have regular income or want to pay their loan off faster but within the 5% limit
want to reduce the risk or impact of rising interest rates
Displayed interest rates subject to change. Kiwibank’s lending criteria, terms and conditions and fees apply.