How it works

  • Take the balance of your home loan
  • Subtract the balance of your savings and everyday accounts
  • Only pay interest on the difference
  • Each month your statement will show you how much you’ve saved in interest.
  • Available to individuals, or couples if they are married, in a civil union or de facto relationship.

Here's how it would work if you had a $200,000 home loan on a 30-year loan with $10,000 in savings. At the Offset Mortgage rate of   (compared to our standard variable rate of  ), you’d save over $51,000 in interest over the life of your loan – and take three years and nine months off your mortgage. Because you’re paying interest on less of your loan, that’s an effective interest rate of  !

How much you could save on interest will depend on rates, fees and how you use your accounts. Use our handy offset mortgage calculator to work out how much you'd be on track to save.

How your linked accounts work

  • You can link any of our savings and everyday accounts (but not term deposits, KiwiSaver or PIE funds like Notice Saver). A savings or everyday account can only be linked to one offset mortgage.
  • Link Kiwibank savings and everyday accounts from your partner, parents and children to save even more — up to eight accounts in total.
  • Use your savings and everyday accounts as usual — interest is calculated daily, so the more you have in your accounts day-to-day, the more you’ll save.
  • Your accounts won’t earn credit interest while they’re linked to your home loan.

How the interest rate and repayments work

  • Offset mortgage has a variable rate — it can change as the market does.
  • Interest is calculated daily, so the more you have in your accounts day-to-day, the more you’ll save.
  • You can choose to have part of your home loan on a fixed interest rate and part of it on offset. If you decide you want to fix all of your home loan, we’ll just de–link your accounts from your home loan and they’ll go back to earning credit interest as usual.
  • Make repayments the same way you would on a standard variable loan.
  • Make extra repayments whenever you like without paying a lump sum repayment fee.

Best for people who:

  • like to have savings on hand
  • keep plenty of cash across their accounts day to day.
What next?
For more certainty about what rate you’ll pay, you can put some of your loan in Offset, and some on a fixed rate. Of if you’re ready to apply, click here.

Offset Mortgage is not available to companies, trusts or sole traders. A customer may have more than one Offset Mortgage.