How it works

Revolving home loans work kind of like a large overdraft.

  • Your loan becomes your everyday account, so money flows in and out of your loan balance as you spend.
  • Make repayments whenever you like, for as much as you like.
  • You can withdraw money again later if you need it (up to your credit limit).

The idea is to save on interest by keeping your overdraft balance as low as possible — interest is calculated daily, so you’ll need to budget carefully to keep as much money as you can in the account.

For more certainty about what rate you’ll pay, you can put some of your loan in Revolving, and some on a fixed rate.


If you’re good with money, try using your credit card for your day-to-day spending, and set up a direct debit from your revolving account to pay it off each month.

You won’t pay interest on your credit card as long as you pay in full by the due date, and you’ll save on interest on your loan, since your money will stay in your account until the last minute.

Best for people who:

  • are good at budgeting
  • won’t be tempted to keep redrawing funds unnecessarily
  • have irregular income — there are no fixed repayment periods
  • are building or renovating over a longer period of time — you might save on interest by drawing on money as you need it, instead of topping up your home loan in one big chunk.

Interested? Let's talk

Get in touch or apply now

Displayed interest rates subject to change. Kiwibanks lending criteria, terms and conditions and fees apply.