If you like a bit of flexibility in life, then a variable home loan could be for you.
Flexibility to make extra payments whenever you like
You can increase your regular repayments without paying a penalty
If interest rates fall, you’ll pay less in interest
With a variable rate (also known as a floating rate), the interest you pay on your home loan can go up or down.
If interest rates fall, you’ll pay less in interest. You'll also pay down your home loan faster, as we keep your repayments the same. If you want to reduce your repayments, you can request this.
On the other hand, if interest rates rise your repayments may increase, so you need to have the room in your budget to cope with higher payments if rates rise.
With a variable rate you also have flexibility to increase your payments whenever you like, or to make lump sum payments. This can be handy if you come into some money, like a work bonus, a pay rise, or an inheritance.
You don’t have to go all in on a variable mortgage. You could put part of your mortgage on a floating rate – giving you the flexibility to make extra or higher payments if you’d like – and part of your mortgage on a fixed rate – giving you certainty about how much you’ll be paying on that amount for a set time.
If you want to chat about your home loan options, get in touch with one of our home loan experts. Our Mobile Mortgage Managers can meet you wherever suits you, or if you’d prefer to come into a branch you can make an appointment with one of our Banking Consultants.
Standard terms and conditions
The calculators should be treated as a guide only. They don't take into account all of your individual circumstances and are not financial advice.
Displayed interest rates subject to change. Kiwibank’s lending criteria, terms and conditions and fees apply.