Put your money to work
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Link up to eight everyday accounts*, every dollar you have in your linked accounts reduces the amount of interest you pay on your offset home loan.
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You'll pay a variable interest rate – it can change as the market does.
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Make extra payments or increase your regular repayments whenever you like without incurring a fee.
How it works
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Offset your money
An offset home loan gives you the opportunity to hold onto the money you've saved, but still make a positive impact on your home loan.
If you have an offset home loan of $50,000 and have $20,000 in your linked accounts, you’ll only pay the offset variable interest rate on $30,000. You won't pay interest on the $20,000 because you have it in your linked accounts.
The smaller the difference between your offset home loan and linked account balance(s), the less interest you'll be charged.
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Interest rate can vary
An offset home loan has an offset variable interest rate, which can change at any time. Interest is calculated daily, so the more you have in your linked accounts day-to-day, the more you'll save.
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Link your accounts
While opening your offset home loan, your home loan specialist will link your chosen accounts. If your savings are currently in savings accounts, they'll help you switch to everyday accounts.
You can link up to eight Kiwibank everyday accounts*. These can be a combination of your own accounts, spouse, partner (civil union or de facto), child, parent or joint borrowers accounts.
The total balance in these accounts is used to offset the amount of interest you pay on this offset home loan.
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Set minimum repayments
You'll have a set minimum repayment amount which you'll pay regularly.
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Unlimited lump sum payments
You can make extra repayments of any amount whenever you like at no extra cost.
To do this, make a transfer into your offset home loan account, or make a home loan payment. You can't redraw this, or transfer money out of your offset home loan account, so make sure you're certain.
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Size the loan to suit you
You could open an offset home loan to match the savings you have.
For example, if you have $20,000 in savings, you could open an offset home loan for $20,000, then link your accounts totalling at least $20,000 and pay no interest on this loan for the time being. The money in your linked everyday accounts is still available to use — once the total dips below $20,000, you'll pay interest on the difference.
Talk to us about how you can set up your offset home loan to work for you.
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Combine with other loan types
The offset home loan can work well in combination with other loans. Think about how much you're likely to have in your linked accounts and what would work for you.
You can split your home loan into multiple loans and choose to have a fixed rate loan, variable rate loan or revolving loan as part of making up your whole home loan.
Learn more about mixing loan types and structuring your home loan.
Changes to linked accounts
All Online Call and First Saver accounts have now been delinked from existing offset home loans. You can open and link new Free Up accounts to keep offsetting your loan, if you haven't done this yet.
You can keep existing links to Back Up Saver, Fast Forward Saver, Front Runner, Bill Blaster and Revolving Home Loans until further notice.
New offset home loans can only be linked to Free Up and Now accounts.
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Home loan standard terms and conditions
Displayed interest rates are subject to change. Kiwibank’s lending criteria, terms and conditions, and fees apply.
Retail products aren't available to financial institutions or wholesale customers.
An offset home loan is only available for individual borrowers (up to a maximum of two borrowers). It's not available for trusts or companies for example.
*New offset home loans can be linked to Free Up or Now accounts. New offset home loans cannot be linked to Online Call, Revolving, First Saver, Fast Forward Saver, Back Up Saver, Front Runner and Bill Blaster accounts, Term Deposits, KiwiSaver, Notice Saver, Business Edge, Business Online Call, PIE Online Call, PIE Term Deposits, Business Performer and any non-Kiwibank account.