Revolving home loans work kind of like a large overdraft.
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.
Displayed interest rates subject to change. Kiwibanks lending criteria, terms and conditions and fees apply.