Speed up the finish line on your home loan

Resist the temptation to reduce your repayments when interest rates fall. Keep them the same to quietly accelerate momentum.

When the interest rate falls — or you re-fix at a lower one — more of your payment goes to the principal, trimming your balance faster and reducing interest paid over the life of your loan.

One big, fixed loan is simple, but it can limit your options.

Splitting your loan into parts can give you room to move. With different chunks on different terms, you can make extra repayments on different loans — sometimes to referred to as 'portions’, adjust one part without affecting the whole, and respond to interest rates changes with more control.

Use our repayments and structuring calculator or talk to a home loan specialist to design a structure that works with your goals.

Lump sum payments have the biggest impact early in the loan, when interest makes up more of the repayment.

• Variable home loan: you can make lump sum payments anytime.
• Fixed rate home loan: check the early repayment limit so you know how much you can top up without fees.

Plan lump sums around what’s allowed under your home loan agreement, so your money works as hard as possible.

An offset home loan links eligible Kiwibank accounts to your loan. The balances reduce the amount of your loan you’re charged interest on — without locking your savings away.

Whānau (family) can link their accounts too, up to eight in total. Everyone keeps access to their money, and you may save on interest.

As repayments get easier, it’s tempting to ease off. Staying the course here matters most.

If you can, nudge them up a little. Small increases late in the game can remove months, sometimes years, from your total term.