Home Loans Made Simple

Convenience – We handle comparisons, negotiations, paperwork, and lender communication – saving you time and stress.

Freedom – Our advisors search multiple lenders to help you secure a competitive home loan that fits your goals.

Personalized Service – Your loan structure is tailored to your financial situation, long-term goals, and borrowing profile.

Confidence – Get Clear, unbiased advice and ongoing support so you can make informed decisions with confidence.

A home loan, or mortgage, is a loan provided by a bank or financial institution to help you purchase a home. This loan is typically spread over a long-term period (25-30 years), during which you make regular payments to repay both the loan and the interest. The loan is secured against the property, meaning if you fail to make repayments, the lender can take ownership of the home to recover the debt.

Fixed Rate Home Loans

• • What it is: Your interest rate is locked in for a set term (usually 1–5 years).
  • Benefits: Predictable repayments and protection against interest rate rises.
  • Considerations: Break fees apply if you repay early or refinance during the fixed term. Limited flexibility for extra repayments. [openexpert.nz]

Floating (Variable) Rate Home Loans

• • What it is: Interest rates fluctuate with market conditions and Reserve Bank decisions.
  • Benefits: Flexible—allows extra repayments without penalties and often includes redraw facilities.
  • Considerations: Payments can increase if rates rise, making budgeting less predictable. [openexpert.nz]

Split Home Loans

• • What it is: Combines fixed and floating rates in one loan.
  • Benefits: Offers a balance between stability and flexibility—part of your loan is fixed, and part is variable.
  • Considerations: More complex to manage and requires careful planning. [openexpert.nz]

Interest-Only Home Loans

• • What it is: You pay only the interest for a set period (usually 1–5 years), then start paying the principal.
  • Benefits: Lower initial repayments, often used for investment properties.
  • Considerations: Principal remains unchanged during the interest-only period, so long-term costs can be higher. [openexpert.nz]

Revolving Credit Loans

• • What it is: Works like an overdraft linked to your home loan—your income goes into the account, reducing interest, and you can withdraw funds as needed.
  • Benefits: Flexible and can help reduce interest if managed well.
  • Considerations: Requires discipline; easy access to funds can lead to overspending. [tella.co.nz]

Offset Home Loans

• • What it is: Links your mortgage to your savings or transaction accounts. The balance in these accounts offsets your loan balance, reducing interest charged.
  • Benefits: Helps save on interest without locking money away.
  • Considerations: Usually requires multiple accounts and may have higher fees

• • Interest Rate Type – Decide between a fixed rate for stability or a floating rate for flexibility. Fixed rates lock in your repayments, while floating rates can change with the market.
  • Loan Term – Longer terms mean smaller monthly payments but more interest overall. Shorter terms cost more each month but save you money in the long run.
  • Flexibility – Check if you can make extra repayments or access redraw facilities without penalties. This matters if you plan to pay off your loan faster.
  • Fees and Charges – Look out for application fees, break fees on fixed loans, and ongoing account costs. These can add up over time.
  • Deposit Requirements – Most lenders require a 20% deposit, but options like Kāinga Ora’s First Home Loan allow as little as 5%.
  • Loan Structure – Choose between table loans (principal + interest), interest-only loans, split loans, or revolving credit—based on your financial goals.
  • Ability to Refinance – Make sure you can switch lenders or restructure your loan easily without heavy penalties.
  • Your Financial Situation – Think about income stability, future plans, and how much risk you’re comfortable taking with interest rate changes.

When you take out a home loan, two main costs matter: interest rates and fees. Understanding both helps you choose the right mortgage.

Interest Rates

• • Fixed Rates: A fixed-rate home loan ensures your interest rate remains constant for a specific period, typically between 1-5 years. This option provides financial stability, as your repayments will not increase during the fixed period, even if market rates rise. However, if rates drop, you may end up paying more than market interest rate.
  • Floating Rates: With a floating-rate home loan, your interest rate can fluctuate based on market conditions. This offers more flexibility, allowing you to make extra repayments or pay off your loan early without penalties. However, monthly repayments can vary, making budgeting less predictable.

Common Fees

• • Application Fee: $0–$500 (some lenders waive this).
  • Break Fee: Charged if you repay or refinance a fixed loan early.
  • Redraw/Top-Up Fee: For accessing extra funds.
  • Ongoing Account Fees: Monthly or annual service charges.
  • Default Interest: If you miss payments, expect your normal rate plus an extra margin.

What Affects Your Interest Rate?

• • Deposit Size: Special rates often require at least 20% deposit.
  • Loan Type: Fixed, floating, split, or revolving credit can change interest rate you get.
  • Bank Offers: Cashback deals or fee waivers may apply.