Your borrowing options
If you’ve got a big purchase coming up take a look at your budget and see if you can cover it with your savings. If that's not possible then consider your borrowing options. Before you take on any debt though, think carefully about how much you’re borrowing and if you’ll be able to comfortably make your repayments.
Budget and save
Take a look at your budget and see if there are places you could cut back on spending and start saving to reduce the amount you borrow. Building up an emergency fund can help you cope with unexpected bills or big purchases, without having to dip into debt. Every little bit helps when it comes to saving, so even if it's just a few dollars a week, see if you can start putting regular savings aside. Setting up a separate savings account can help, as it keeps your nest egg separate from your everyday account.
Consider a credit card
Depending on how much you’re looking to spend and how quickly you think you could pay it off, a Zero Visa credit card could be a good option for making a big purchase. If you’re more interested in getting rewards than paying low interest, then take a look at our Air New Zealand Airpoints™ credit cards.
Compare interest rates and fees on our credit cards to see which one might suit you. Whatever card you choose, you need to be able to pay at least the minimum repayments each month, otherwise you’ll face extra interest and charges. At Kiwibank the minimum monthly repayment is calculated as either 5% of your closing balance or $10, whichever is greater.
Check out personal loans
If you’re looking to borrow $2,000 or more and prefer the certainty of set repayments, a personal loan might suit you. Once your loan is approved you could get the cash as early as the next day.
Kiwibank Home Loan customers may be eligible for a discounted Personal Loan with Latitude.
A home loan top-up
Want to renovate your home, spruce up your kitchen, do some landscaping or go green with solar panels? You might be able to pay for it by topping up your existing Kiwibank Home Loan. A top-up means that you borrow money and add it to your existing home loan.
You may also be able to use a top-up to pay for a big purchase or to pay off existing debts that may be at a higher interest rate such as credit cards, personal loans and hire purchases.
The amount you could borrow will depend on how much of your home loan you’ve already paid off, the current value of your home, how much you can afford in repayments and what the top-up is for.
Take a look at an overdraft
If you need a bit of flexibility, take a look at an overdraft. An overdraft can be accessed through your everyday account and have an agreed limit that you can spend up to whenever you need to. You only pay interest on the money you use, so if you've arranged an overdraft limit of $5,000 but only use $2,000 in a month, you only pay interest on $2,000.
There are no minimum monthly payments, but repaying it as quickly as you can will minimise the amount of interest you pay.
Improve your credit rating
If you’re late paying bills or have defaulted on a loan or a credit card, this is likely to show up on your credit report. If you’ve made a few money mistakes in the past, you can start to rebuild a positive financial picture by paying your bills and loans on time, or if you’ve fallen behind in payments, setting up a regular repayment plan to get back on track.
Have extra funds available
Having an emergency fund is a smart way to give yourself a financial backstop to help out with unexpected finances, or if things are tight between pay days. Building up an emergency fund could take some time, so if you need extra funds in the meantime you could consider borrowing. This will give you a buffer that you can dip into, up to an approved limit.
Cope with surprises
Life doesn’t always go to plan and there are times you might find yourself dealing with unexpected costs or expenses. Ideally, you'll have an emergency fund or insurance to cope with financial hiccups, but if your savings can't cope with an unwelcome surprise you could look at an overdraft or a credit card to help tide you over.
Manage your everyday banking
Need some help or inspiration on how to manage your everyday finances and deal with your daily purchases? We’ve got accounts, tools and calculators to help you sort out your everyday spending.
This page provides general information and isn't intended as regulated financial advice. To review your specific situation and financial requirements please talk to one of our Kiwibank Representatives or your Financial Adviser.
Lending criteria, terms and conditions, and fees apply. Interest rates, fees and limits subject to change. See all credit cards terms and conditions.
Kiwibank is the issuer of the Air New Zealand Airpoints credit cards. Airpoints terms and conditions apply. See airpoints.co.nz for details.
Kiwibank’s Personal Overdraft Terms and Conditions (PDF 220.0 KB) apply to all Kiwibank Overdrafts. Kiwibank’s lending criteria, terms and conditions, and fees apply.
Personal loans are provided by Latitude Financial Services Limited ('Latitude'). Kiwibank receives remuneration for referring personal loans to Latitude. Latitude's lending criteria, terms and conditions and fees apply, including an establishment fee. See Latitudes Personal Loan terms and conditions.
Home loan standard terms and conditions
Displayed interest rates are subject to change. Kiwibank’s lending criteria, terms and conditions, and fees apply.
Co-own: Maximum four people per application. Offset home loan may not be available. Excludes business banking.