Choose from four loan types
Structure your home loan to suit you. You can put your whole home loan on one loan account, or split your home loan into multiple loans and use different types if you like. Here are the four types of loans we offer.
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Fixed rate home loan
A fixed term home loan gives you the confidence of knowing exactly how much your regular mortgage repayments will be for the duration of the term. Any rate changes that occur during the fixed period won't affect your fixed term. There's some flexibility – you can make extra payments each year that's up to a total of 5% of what your loan amount is when the term of your fixed loan starts.
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Offset home loan
An offset loan can reduce the amount of interest you pay on your home loan by using money in your everyday and savings account to ‘offset’ your home loan interest charges. Eligibility criteria apply.
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Variable rate home loan
With a variable rate (also known as a floating rate), the interest you pay on your home loan can go up or down as interest rates rise and fall. You have the option to make extra repayments whenever you like.
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Revolving home loan
A revolving home loan has a revolving interest rate which is variable, so it can change at anytime. There are no set repayment dates. You can make repayments whenever you like, for as much as you like. You can withdraw money if you need it, so you'll need to be good at budgeting and resisting temptation. Done well, you might save on interest over the years.
Splitting your home loan into multiple loans
Splitting your home loan is optional — you can keep it simple if you like.
You can use multiple loans to make up your entire home loan. These are individual loan accounts with their own interest rates, and are sometimes to referred to as 'portions'. It's a bit like having different slices of your home loan that make up the whole pie.
For example, your home loan could be made up of:
- Loan one: fixed rate term loan (current rate for 1 year)
- Loan two: fixed rate term loan (current rate for 6 months)
- Loan three: variable rate
It's up to you whether you want your whole home loan on one loan, or whether to split it into multiple loans. Multiple loans may require more managing from you.
Reasons to consider splitting your home loan
You can build your home loan in a way that helps balance your budget with what's happening in the market.
Splitting your home loan can help you:
- Hedge your bets against future rate changes — Whether we're in an increasing or decreasing rates environment, you can fix for different term lengths on different loans to give yourself options.
- Budget for the future — If you know you'd like to make a lump sum payment soon, having a variable loan allows you to do this whenever you want at no extra cost. If you're saving regularly for something significant, with an offset loan you can use this balance to offset the amount of interest you pay on your loan. If the frequency of your income stream has changed or you want to have access to some of your money for ongoing renovations for example, a revolving loan could be suitable. If you want the stability of knowing what your repayments are, a fixed loan is a good option. Using multiple loans might give you the budgeting solution you need.
Every person's situation is unique. If you're not sure whether splitting your home loan could be helpful for you, that's alright. You can discuss this in depth with your Mobile Mortgage Manager.
Review your home loan regularly
Splitting your home loan is something you can do when you're first setting it up, or later on, for a fee.
Whenever you have a fixed term about to expire, you'll have a decision to make: re-fix this loan using the current rates and terms available or leave it to automatically roll onto a variable loan.
At this point, if you're interested in splitting your loan, it makes sense to do so when your fixed term loans come to an end so you don't encounter break costs. You can choose to split the balance up into multiple loans rather than re-fixing the whole loan.
This is usually a good time to look at your current situation. Have your circumstances changed? Is there anything new that impacts how much you can afford to pay, like a baby or a pay rise?
Calculate your options
Use our repayments and structuring calculator to:
- See how splitting your home loan into different loans works — put in your own numbers and play around with different scenarios
- Compare up to three different home loan structures and 10 different loans on each — you'll see 'Portion 1' and can add more loan accounts
- Duplicate your structure and then change things like your rate, repayment amount, repayment frequency or loan term
- Regularly review your repayments throughout the duration of your home loan, especially when you're nearing the end of any fixed rate periods
Your home loan specialist can help you tailor your loan structure to your circumstances.
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