Variable rate home loan

This is a loan with an interest rate that may change over time. Interest is calculated daily and charged as part of your regular repayments.

Variable loans can be influenced by the official cash rate (OCR) set by the Reserve Bank of New Zealand. If we change our variable rate, we'll give you notice before applying it to your existing loan.

Your loan will automatically have a minimum repayment amount which you'll pay weekly, fortnightly or monthly. You can choose your repayment amount and frequency when you set your loan up.

To change your repayments, send us a secure mail or call 0800 000 654.

If the interest rate falls, we'll keep your repayments the same unless you request otherwise, so you’ll pay less in interest and pay off your mortgage faster. If the interest rate rises, your repayments will increase so you need to have room in your budget to allow for this.

Use our repayments calculator to forecast what it could look like at different rates.

You can make as many lump sum payments as you like at no extra cost. It's as easy as transferring money into your variable rate loan. See how to make a lump sum payment.

You can choose to fix your variable home loan at any time with no fee. Similarly, if you have a fixed term that ends and rolls onto a variable loan, there is no fee.

So, for example, if you're waiting for interest rates to drop before you fix, you can stay on a variable loan knowing that you can start a fixed term at anytime. You can do this within our mobile app or internet banking.

You don’t have to put your entire mortgage on a variable rate.

You can split your home loan into multiple loans and choose to have a fixed rate loan, offset loan or revolving loan to suit your needs, as part of making up your whole home loan.

Learn more about mixing loan types and structuring your home loan.