Best New Zealand Home Loans - 1, 2 & 5 Year Fixed Rates and Variable/Floating Rates
Looking for the best home loan interest rates? Our home loan comparison tables give you an instant overview of the top deals from trusted New Zealand lenders.
Updated 9 February 2026
Compare Home Loans in Seconds
Every bank loudly promotes its mortgage offers, but does lower interest always mean the cheapest deal? Right now, we estimate there are over 200 home loan options available. The team at MoneyHub has handpicked what we consider the best mortgage deals available right now. Our list of home loan offers applies to first-time and existing homeowners looking to refinance or buy a new home.
We compare home loans from lenders all over New Zealand to help you find the best mortgage rates. We believe that the best mortgage offers will be the lowest priced, with low (or zero) fees and provided by a trusted lender.
Our guide covers:
We compare home loans from lenders all over New Zealand to help you find the best mortgage rates. We believe that the best mortgage offers will be the lowest priced, with low (or zero) fees and provided by a trusted lender.
Our guide covers:
Know this first: Buying a home is most likely going to be the most expensive financial decision you will ever make. Our helpful guides, calculators and resources are here for you to avoid ever paying more than you should.
Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here.
When you're looking to buy a home, there are two important questions to ask yourself:
Our loan affordability calculator and repayment mortgage calculator answer both of these questions in seconds. Also, if you are on an existing interest rate and want to switch to a better deal, our fixed or floating interest rate calculator helpfully tells you how much you could save every month, and how much sooner you could pay off your mortgage.
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here.
When you're looking to buy a home, there are two important questions to ask yourself:
- How much can I borrow?
- How much is my mortgage going to cost every month?
Our loan affordability calculator and repayment mortgage calculator answer both of these questions in seconds. Also, if you are on an existing interest rate and want to switch to a better deal, our fixed or floating interest rate calculator helpfully tells you how much you could save every month, and how much sooner you could pay off your mortgage.
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
- Your estimated borrowing amount
- Monthly, fortnightly, and weekly repayments
- Your deposit and income breakdown
- Tips to improve your mortgage readiness
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Why Our Mortgage Rates Come From LifeDirect Mortgages
Many MoneyHub readers have noticed that our mortgage rates often differ from those advertised directly by banks. We work with LifeDirect Mortgages, who, like most mortgage brokers and advisers, have the power to beat what the banks offer while giving you all of the benefits.
Why Mortgage Broker and Adviser Rates Are Often Better
1. Access to Market-Leading Rates
The rates we display from LifeDirect Mortgages are often better than standard advertised bank rates because brokers access wholesale pricing tiers. Banks offer different rates to different channels - the rates you see on bank websites are typically "retail" rates, while mortgage brokers often negotiate better wholesale rates for their clients.
2. Competitive Pressure
When you go through a mortgage broker, multiple banks compete for your business. This competition drives rates down as lenders know they're bidding against other banks, not just presenting a take-it-or-leave-it offer.
3. Volume Negotiating Power
LifeDirect Mortgages has written over $2 billion in home loans, giving them significant leverage to negotiate better rates with all major banks. This volume allows them to secure deals that individual borrowers can't access directly.
How does this system work?
There are three key aspects of mortgage advisers to be aware of:
What this means for you:
Please note that a regular home loan refers to one that is taken out on a long-term basis and is not repaid in large chunks or in full within 27 months from the drawdown date. What falls outside this is bridging finance, commercial loans or specialist loans due to poor credit or a specialist purchase. Fees are charged here, but agreed upon before the client commits to the lending.
Important:
The Bottom Line
Why Mortgage Broker and Adviser Rates Are Often Better
1. Access to Market-Leading Rates
The rates we display from LifeDirect Mortgages are often better than standard advertised bank rates because brokers access wholesale pricing tiers. Banks offer different rates to different channels - the rates you see on bank websites are typically "retail" rates, while mortgage brokers often negotiate better wholesale rates for their clients.
2. Competitive Pressure
When you go through a mortgage broker, multiple banks compete for your business. This competition drives rates down as lenders know they're bidding against other banks, not just presenting a take-it-or-leave-it offer.
3. Volume Negotiating Power
LifeDirect Mortgages has written over $2 billion in home loans, giving them significant leverage to negotiate better rates with all major banks. This volume allows them to secure deals that individual borrowers can't access directly.
How does this system work?
There are three key aspects of mortgage advisers to be aware of:
- Commission-Based Model: Mortgage advisers are paid by the banks, not by you. This means there's no cost to you for accessing better rates - the banks pay the adviser's commission because they value the business volume brokers bring.
- Professional Relationships: Experienced brokers, such as LifeDirect, have established relationships with banks. These relationships often unlock access to better loan terms, interest rates, and deals that may not be available to the general public.
- Market Expertise: Mortgage advisers understand each bank's appetite for different types of loans and current competitive positioning, allowing them to negotiate the best possible terms for your specific situation.
What this means for you:
- Better Rates: The rates we display via LifeDirect Mortgages represent the actual interest rates for most loans approved. In many cases, these are better than what you'd be offered by walking into a bank branch.
- No Hidden Costs: You won't pay any fees to LifeDirect Mortgages - their service is no cost to borrowers when taking out a regular home loan. The bank pays their commission, so there are no additional costs passed on to you.
- Comprehensive Comparison: Rather than showing you just one bank's offering, broker rates give you access to the best deals across multiple lenders, ensuring you see genuinely competitive rates.
Please note that a regular home loan refers to one that is taken out on a long-term basis and is not repaid in large chunks or in full within 27 months from the drawdown date. What falls outside this is bridging finance, commercial loans or specialist loans due to poor credit or a specialist purchase. Fees are charged here, but agreed upon before the client commits to the lending.
Important:
- Individual pricing may vary based on your LVR, loan size, affordability, employment status, property type and other factors.
- Not all banks work with mortgage brokers, so it's worth comparing both broker and direct bank options if you have specialist needs.
- The rates shown are indicative - your actual rate will depend on your specific circumstances and current market conditions.
The Bottom Line
- When you see a rate on MoneyHub that's better than what a bank advertises directly, it's because LifeDirect Mortgages can access market-leading interest rates and negotiate on your behalf.
- This isn't a trick or temporary teaser rate - it's the genuine benefit of using a professional mortgage broker with substantial market presence and negotiating power.
- For most New Zealanders, this means securing a better deal on what is likely their largest financial commitment, all without incurring any additional fees.
Your Guide to the Best Home Loan Rates, Brought to You by LifeDirect MortgagesLifeDirect Mortgages, a trusted name in mortgage brokering across New Zealand, proudly supports this guide. We value LifeDirect Mortgages' commitment to helping New Zealanders secure the best home loan solutions, offering personalised advice tailored to your needs.
Whether you're a first-home buyer, looking to refinance, or exploring investment property options, LifeDirect Mortgages' experienced team makes the process simple, transparent, and stress-free. We proudly name them winners of our 2025 Editor's Choice for our favourite nationwide mortgage adviser. We encourage you to contact their friendly experts to discuss your mortgage needs - you can learn more about LifeDirect Mortgages with our detailed review or visit their website. Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here. |
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Video explainer
MoneyHub's Head of Research, Christopher Walsh, explains how to look for the best value home loan to reduce your overall costs of borrowing as well as highlighting must-know facts and considerations:
MoneyHub's Head of Research, Christopher Walsh, explains how to look for the best value home loan to reduce your overall costs of borrowing as well as highlighting must-know facts and considerations:
Best One-Year Fixed Home Loan Offers
Hunting for the sharpest mortgage rates in a clear, no-nonsense table? LifeDirect Mortgages presents them here.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
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ANZ 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $500 Early Payment Charges: Yes Want to learn more or apply? Visit ANZ Home Loans or apply with LifeDirect Mortgages |
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ASB 1 Year FixedRate: 4.59% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit ASB Home Loan Mortgages or apply with LifeDirect Mortgages |
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BNZ Classic 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $400 Early Payment Charges: Yes Want to learn more or apply? Visit BNZ Home Loans or apply with LifeDirect Mortgages |
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Kiwibank 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: None Early Payment Charges: Yes Want to learn more or apply? Visit Kiwibank Home Loans or apply with LifeDirect Mortgages |
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Westpac 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - $400 Early Payment Charges: Yes Want to learn more or apply? Visit Westpac Home Loans or apply with LifeDirect Mortgages |
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TSB 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $250 Early Payment Charges: Yes Want to learn more or apply? Visit TSB Home Loan Mortgages or apply with LifeDirect Mortgages |
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The Cooperative Bank 1 Year FixedRate: 4.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - $240 Early Payment Charges: Yes Want to learn more or apply? Visit Cooperative Bank Home Loans or apply with LifeDirect Mortgages |
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SBS Bank 1 Year FixedRate: 4.49% p.a. (first home buyers only)
Minimum Equity: 20% Fees: Loan Application Fee - $400 Early Payment Charges: Yes Want to learn more or apply? Visit SBS Bank Home Loans or apply with LifeDirect Mortgages |
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First Credit Union 1 Year FixedRate: 4.79% p.a.
Minimum Equity: 20% Fees: Establishment fee - None Early Payment Charges: None Want to learn more or apply? Visit First Credit Union or apply directly |
Your Guide to the Best Home Loan Rates, Brought to You by LifeDirect MortgagesLifeDirect Mortgages, a trusted name in mortgage brokering across New Zealand, proudly supports this guide. We value LifeDirect Mortgages' commitment to helping New Zealanders secure the best home loan solutions, offering personalised advice tailored to your needs.
Whether you're a first-home buyer, looking to refinance, or exploring investment property options, LifeDirect Mortgages' experienced team makes the process simple, transparent, and stress-free. We proudly name them winners of our 2025 Editor's Choice for our favourite nationwide mortgage adviser. We encourage you to contact their friendly experts to discuss your mortgage needs - you can learn more about LifeDirect Mortgages with our detailed review or visit their website. Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here. |
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Best Two-Year Fixed Home Loan Offers
Hunting for the sharpest mortgage rates in a clear, no-nonsense table? LifeDirect Mortgages presents them here.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
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ANZ 2 Year FixedRate: 4.89% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $500 Early Payment Charges: Yes Want to learn more or apply? Visit ANZ Home Loans or apply with LifeDirect Mortgages |
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ASB 2 Year FixedRate: 4.95% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit ASB Home Loan Mortgages or apply with LifeDirect Mortgages |
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BNZ Classic 2 Year FixedRate: 4.69% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $400 Early Payment Charges: Yes Want to learn more or apply? Visit BNZ Home Loans or apply with LifeDirect Mortgages |
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Kiwibank 2 Year FixedRate: 4.89% p.a.
Minimum Equity: 20% Fees: None Early Payment Charges: Yes Want to learn more or apply? Visit Kiwibank Home Loans or apply with LifeDirect Mortgages |
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Westpac 2 Year FixedRate: 4.89% p.a.
Minimum Equity: 20% Fees: Establishment fee - $400 Early Payment Charges: Yes Want to learn more or apply? Visit Westpac Home Loans or apply with LifeDirect Mortgages |
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The Cooperative Bank 2 Year FixedRate: 4.89% p.a.
Minimum Equity: 20% Fees: Establishment fee - $240 Early Payment Charges: Yes Want to learn more or apply? Visit Cooperative Bank Home Loans or apply with LifeDirect Mortgages |
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TSB 2 Year FixedRate: 4.69% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $250 Early Payment Charges: Yes Want to learn more or apply? Visit TSB Home Loan Mortgages or apply with LifeDirect Mortgages |
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SBS Bank 2 Year FixedRate: 4.69% p.a.
Minimum Equity: 20% Fees: Loan Application Fee - $400 Early Payment Charges: Yes Want to learn more or apply? Visit SBS Bank Home Loans or apply with LifeDirect Mortgages |
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First Credit Union 2 Year FixedRate: 4.95% p.a.
Minimum Equity: 20% Fees: Establishment fee - None Early Payment Charges: None Want to learn more or apply? Visit First Credit Union or apply with LifeDirect Mortgages |
Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for two-year home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.
Your Guide to the Best Home Loan Rates, Brought to You by LifeDirect MortgagesLifeDirect Mortgages, a trusted name in mortgage brokering across New Zealand, proudly supports this guide. We value LifeDirect Mortgages' commitment to helping New Zealanders secure the best home loan solutions, offering personalised advice tailored to your needs.
Whether you're a first-home buyer, looking to refinance, or exploring investment property options, LifeDirect Mortgages' experienced team makes the process simple, transparent, and stress-free. We proudly name them winners of our 2025 Editor's Choice for our favourite nationwide mortgage adviser. We encourage you to contact their friendly experts to discuss your mortgage needs - you can learn more about LifeDirect Mortgages with our detailed review or visit their website. |
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Best Five-Year Fixed Home Loan Offers
Hunting for the sharpest mortgage rates in a clear, no-nonsense table? LifeDirect Mortgages presents them here.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
MoneyHub is proud to partner with LifeDirect Mortgages, which, for top lenders, can offer discounts on standard rates by 0.03% to 0.10% (or more), reflected in the rates below. For an $800,000 mortgage, that saves $240 to $800+ a year (e.g., 0.03% = $240/year; 0.10% = $800/year) on interest costs. Best of all, the rates below do not include cashback deals. Backed by years of expertise, LifeDirect Mortgages’ nationwide team has a reputation for getting New Zealanders into leading mortgage deals.
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TSB 5 Year FixedRate: 5.49% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $250 Early Payment Charges: Yes Want to learn more or apply? Visit TSB Home Loan Mortgages or apply with LifeDirect Mortgages |
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ANZ 5 Year FixedRate: 5.99% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit ANZ Home Loans or apply with LifeDirect Mortgages |
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BNZ 5 Year FixedRate: 5.69% p.a.
Minimum Equity: 20% Fees: Establishment fee - up to $400 Early Payment Charges: Yes Want to learn more or apply? Visit BNZ Home Loans or apply with LifeDirect Mortgages |
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Westpac 5 Year FixedRate: 5.49% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit Westpac Home Loans or apply with LifeDirect Mortgages |
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SBS Bank 5 Year FixedRate: 5.29% p.a.
Minimum Equity: 20% Fees: Loan Application Fee - $400 Early Payment Charges: Yes Want to learn more or apply? Visit SBS Bank Home Loans or apply with LifeDirect Mortgages |
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ASB 5 Year FixedRate: 5.69% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit ASB Home Loan Mortgages or apply with LifeDirect Mortgages |
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The Cooperative Bank 5 Year FixedRate: 5.69% p.a.
Minimum Equity: 20% Fees: Establishment fee - $240 Early Payment Charges: Yes Want to learn more or apply? Visit Cooperative Bank Home Loans or apply with LifeDirect Mortgages |
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Kiwibank 5 Year FixedRate: 5.79% p.a.
Minimum Equity: 20% Early Payment Charges: Yes Want to learn more or apply? Visit Kiwibank Home Loans or apply with LifeDirect Mortgages |
Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for five-year home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.
Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
- Your estimated borrowing amount
- Monthly, fortnightly, and weekly repayments
- Your deposit and income breakdown
- Tips to improve your mortgage readiness
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Your Guide to the Best Home Loan Rates, Brought to You by LifeDirect MortgagesLifeDirect Mortgages, a trusted name in mortgage brokering across New Zealand, proudly supports this guide. We value LifeDirect Mortgages' commitment to helping New Zealanders secure the best home loan solutions, offering personalised advice tailored to your needs.
Whether you're a first-home buyer, looking to refinance, or exploring investment property options, LifeDirect Mortgages' experienced team makes the process simple, transparent, and stress-free. We proudly name them winners of our 2025 Editor's Choice for our favourite nationwide mortgage adviser. We encourage you to contact their friendly experts to discuss your mortgage needs - you can learn more about LifeDirect Mortgages with our detailed review or visit their website. Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here. |
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Best Floating/Variable Home Loans
The major banks all offer a similar interest rate - currently around 5.75% to around 7.99% p.a. However, the lenders below challenge the status quo and provide cheaper floating mortgage rates:
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Simplicity First Home Loan and RefinancingRate: 4.20% p.a.
Minimum Equity: 20% Early Payment Charges: No Want to learn more or apply? You'll need to be a Simplicity member. Visit Simplicity to learn more. Overview
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First Credit Union Floating RateRate: 6.49% p.a
Minimum Equity: 20% Fees: Establishment fee - None Early Payment Charges: None Want to learn more or apply? Visit First Credit Union or apply directly |
Disclaimer: Our team of experts have chosen those home loans they believe to be the best deals for floating/variable home loan terms. A selection of those, for which we have published links directly to the lenders, are shown above.
Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.
Warning: Your home may be repossessed if you do not keep up repayments on your mortgage. Written quotations are available from individual lenders, and loans are subject to valuations, credit checks, affordability assessment and residency confirmation. All interest rates are subject to change without notice. Please check all rates and terms with your lender, mortgage broker or financial adviser before undertaking any borrowing.
Ready to Apply for a Home Loan?
Consider a Mortgage Broker - They Usually Save Time and Money
Mortgage brokers are popular and don't charge a fee. Their service goes beyond what a bank offers by comparing a number of lenders to find the best deal for your circumstances.
We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand:
We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand:
Home Loan Resources - Facts, Guides, Tools and Tips
Buying a home is a big step, and paying for it is not a decision you make every day. To help explain the important pieces, we've presented some popular tips and tools below.
What home loan features will help me save money?
A mortgage is most likely to be your largest financial commitment, and you’ll like have to make repayments for 10-25 years. Every dollar you can save makes a huge difference. And while the best deal will often be a home loan with the lowest interest rate, other features can go a long way to reduce the overall cost. We’ve outlined these below:
1. Free extra repayments: If you can make overpayments without being charged a fee, you can lower your balance quicker and save significantly on interest costs. If you feel as if you will be in a position to make extra repayments, then it’s a good idea to look for mortgage deals which offer it as standard. By applying spare cash to pay a little off your loan, you’re lowering your loan amount quicker, and therefore saving on interest costs. As an example, most variable interest rate home loans offer free extra repayments.
2. Offset mortgage account: Increasingly popular with more and more homeowners, an offset account is a great way to save on interest costs. It works by ‘offsetting’ money you have in your bank account against your mortgage balance. For example, if you have $5,000 in your bank account and a mortgage balance of $500,000, you’ll pay interest on $495,000 only. Essentially, every dollar in your bank account is offset against your mortgage amount, meaning you will pay less interest. Our offset mortgage guide has more details.
3. Split interest rate: If you’re unsure about what interest rates will do in the future and don’t want to commit yourself to a specific rate, you can have half of your loan tied to a fixed rate, and the other half tied to a variable rate. While this may be more expensive overall than a cheap fixed offer, you have the flexibility to overpay on the variable portion of the mortgage and avoid the overpaying for your mortgage.
4. Redraw facility option: If you’ve been paying more than your minimum repayments on your mortgage, a redraw facility means you have some extra money available on your loan that you could ‘redraw’, and use for whatever you like. The terms and fees vary per lender, but if you believe this could be something you would use, it’s worth considering.
Expert Tip – Variable mortgages come usually have a higher interest rate than fixed-rate terms, but generally offer greater flexibility and features and often have lower fees. Fixed-rate deals, by comparison, have stricter terms and conditions, and, generally, more fees.
1. Free extra repayments: If you can make overpayments without being charged a fee, you can lower your balance quicker and save significantly on interest costs. If you feel as if you will be in a position to make extra repayments, then it’s a good idea to look for mortgage deals which offer it as standard. By applying spare cash to pay a little off your loan, you’re lowering your loan amount quicker, and therefore saving on interest costs. As an example, most variable interest rate home loans offer free extra repayments.
2. Offset mortgage account: Increasingly popular with more and more homeowners, an offset account is a great way to save on interest costs. It works by ‘offsetting’ money you have in your bank account against your mortgage balance. For example, if you have $5,000 in your bank account and a mortgage balance of $500,000, you’ll pay interest on $495,000 only. Essentially, every dollar in your bank account is offset against your mortgage amount, meaning you will pay less interest. Our offset mortgage guide has more details.
3. Split interest rate: If you’re unsure about what interest rates will do in the future and don’t want to commit yourself to a specific rate, you can have half of your loan tied to a fixed rate, and the other half tied to a variable rate. While this may be more expensive overall than a cheap fixed offer, you have the flexibility to overpay on the variable portion of the mortgage and avoid the overpaying for your mortgage.
4. Redraw facility option: If you’ve been paying more than your minimum repayments on your mortgage, a redraw facility means you have some extra money available on your loan that you could ‘redraw’, and use for whatever you like. The terms and fees vary per lender, but if you believe this could be something you would use, it’s worth considering.
Expert Tip – Variable mortgages come usually have a higher interest rate than fixed-rate terms, but generally offer greater flexibility and features and often have lower fees. Fixed-rate deals, by comparison, have stricter terms and conditions, and, generally, more fees.
What home loan fees will I need to budget for?
Beyond the interest rate cost, several fees are chargeable with any home loan. Some of these are paid upfront, whereas others can be added to your mortgage and paid off in the long-term. The fees include:
- Establishment fee: This is an upfront fee that you pay to draw down the mortgage and usually ranges between $0 to around $400 or $500.
- Service fee: This is relatively rare and usually associated with car finance or personal loans, but it can exist in mortgages. A service fee is a monthly charge that covers the cost of maintaining your mortgage.
- Legal, valuation, builder reports and settlement fees: Before you make an offer, you may want to engage a building inspector and valuer to make sure the property doesn’t have inherent problems and so that you know what it’s worth. Legal costs, such as conveyancing, come once you’ve made an offer, as does settlement legal work. A budget of around $2,500 should take care of these costs if you’re buying a standard home.
- Discharge fee: Some mortgages charge you a small fee once your mortgage is paid off in full.
- Early Repayment fee: If you pay off your mortgage before the agreed ending date, you may pay a set fee to compensate the lender for lost interest revenue.
- Feature fees: If you agree to specific features, such as extra repayments, redraw facilities or an offset account, you may pay an ongoing fee for these services.
Applying for a Home Loan? Read Our 8 Must-Know Facts
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Understand 'mortgage rates' and how they affect what you'll pay for a home loan'Mortgage rates' are the rates (i.e. percentage) of interest charged on a home loan. Mortgage rates are usually determined by the lender and can be either fixed (which means the interest rate will be the same for the term of the mortgage) or floating (meaning the interest rate will move when the New Zealand official cash rate changes).
Fixed-rate home loans
Floating home loans
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Unsure whether to fix or float? You can do bothSome lenders offer a “mixing and matching” home loan. This means you can split your home loan between both options, taking advantage of certainty and exposing you to the risk of interest rate changes. This hybrid mortgage is best for people who want certainty but also think you’ll have a bit of extra cash in the future (e.g. a bonus or investment sale) and want to take advantage of using the extra money to make a lump sum repayment on the floating rate loan for no fee.
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Lender fees are largely irrelevant - the lowest interest rate home loan will be, like for like, the best valueMost lenders charge you a fee for taking out a home loan, which can vary from $0 to $500 depending on the lender. Generally, owner-occupied mortgages have the lowest fees.
What matters is how much you will borrow – it’s better to pay a high fee to secure a low-interest rate on a big mortgage in many cases. With fees for owner-occupier mortgages generally consistent between lenders, the interest rate is the best measure of whether or not it’s a good deal. For example, a 3.99% interest rate mortgage with a $500 application or establishment fee is better than a 4.49% interest rate mortgage. |
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Decide on a repayment term based on what you can afford - the shorter, the less interest you'll pay overall
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Understand how a lender's fixed deal terms, which range from 6 months, 1 year, 18 months, 2 years, 3 years and up to 5 years, work in practice
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​​Remortgage with confidence and flexibility when your fixed term interest rate expires
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Understand '​interest-only' vs 'repayment mortgages'
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Deposits can be tricky to put together, but KiwiSaver can helpOur guides to the KiwiSaver First-Home Withdrawal and KiwiSaver HomeStart Grant schemes explain how KiwiSaver can be used to help you buy your first house.
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Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
- Your estimated borrowing amount
- Monthly, fortnightly, and weekly repayments
- Your deposit and income breakdown
- Tips to improve your mortgage readiness
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Frequently Asked Questions
How do mortgages work?
A mortgage is a type of loan used to buy a house. A bank lends you a fixed amount of money for a certain period of time, which you repay every month. The amount of mortgage you need will depend on how much the house is and how much money you can put towards a deposit. For example, if you have a $100,000 deposit and the house you want is $500,000, you will apply for a $400,000 mortgage.
How much can I borrow?
Banks look at home loan ‘affordability’, which means the amount you can borrow will depend on your annual income, current savings as well as your existing ongoing financial commitments.
Our how much can I borrow? calculator helps you understand the size of a mortgage you may be eligible to borrow based on what you can afford to repay every month. You can also get an estimate of the ongoing mortgage costs using our mortgage calculator. Your credit history is also very important, as is your expected mortgage term.
Video explainer
MoneyHub's Head of Research, Christopher Walsh, explains how our home loan affordability calculator works in the video below, as well as highlighting must-know facts and considerations:
Our how much can I borrow? calculator helps you understand the size of a mortgage you may be eligible to borrow based on what you can afford to repay every month. You can also get an estimate of the ongoing mortgage costs using our mortgage calculator. Your credit history is also very important, as is your expected mortgage term.
Video explainer
MoneyHub's Head of Research, Christopher Walsh, explains how our home loan affordability calculator works in the video below, as well as highlighting must-know facts and considerations:
What are home loan interest rates?
Mortgage interest rates are the cost of borrowing your home loan. The lender, i.e. bank, determines the percentage you pay. Mortgage interest rates can be fixed (meaning they remain the same for the term of the loan) or floating (which means they move with the NZ Reserve Bank and general mortgage market conditions).
Our fixed or floating calculator and guide explains these two different type of mortgage interest rates.
Our fixed or floating calculator and guide explains these two different type of mortgage interest rates.
How do I get a home loan?
- To get a home loan, you will need to have enough money for a deposit which will partially pay for the home you are looking to purchase. This should be at least 15% of the property value, but most banks prefer a minimum of 20% to comply with Reserve Bank requirements.
- Once you have the deposit together, you need to apply for a home loan with a lender. As part of the application process, you will need to show your earnings, expenditures, savings and how much you’d like to borrow. The lender will then assess your application.
- Alternatively, you could go with a mortgage broker (see our guide) who would handle the application process on your behalf.
What happens to my home loan if I want to move?
Most home loans are portable. This means you are allowed to transfer the mortgage from your existing property to a new property should you move home. Fees are involved, as the lender will need to value the property, and there will be legal work done as well. If your new home costs more than your existing home, you may need to borrow more from the bank. Some banks may charge for the costs they incur to organise the mortgage transfer.
What does 'equity' and 'LVR' mean?
LVR means the Loan to Value ratio, which is the amount of your loan compared to the value of your property. LVR is always a percentage, and calculated by dividing the amount of the loan by the value of the property. For example, if the property is worth $500,000 and you have a deposit of $100,000, the LVR will be 80%. ($500,000-$100,000)÷$500,000 = 80%. The higher the LVR, the riskier the loan is to a lender, and generally, the higher the interest rate. Conversely, if you have a home loan with a 20% or 30% LVR mortgage, you are relatively safer and will generally be offered a lower interest rate.
​What is an owner-occupier home loan?
An owner-occupier home loan is a loan for a property that the owner will live in. This means that you can’t use your property as a rental and live somewhere else. Owner-occupier mortgages tend to be the lowest risk to a lender and have the lowest interest rates compared to buy-to-let mortgages.
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I’m still unsure, what should I do next?
1. A mortgage broker may be able to help; our guide explains everything you need to know about their services. Mortgage brokers don’t charge for their services directly and are only paid if you go ahead. Their experience is unrivalled, and they will happily answer your questions about all things concerning the process of owning a home.
2. If you want to know more about looking for a home, check out our first home buyer guide, which outlines useful step-by-step tips.
3. Or, if you’re trying to sort out your budget, our mortgage calculator can help. We’ve also published any other calculators, including:
4. If you’re refinancing, check out our mortgage refinance calculator and see how much you can save by switching to the best mortgage deal.
5. If you’re looking for an interest-only deal, there are more risks involved. Check out our interest-only mortgage calculator and guide.
And, if you’re ready to jump right in, our home loan comparison tables (above) are the perfect place to start your search.
2. If you want to know more about looking for a home, check out our first home buyer guide, which outlines useful step-by-step tips.
3. Or, if you’re trying to sort out your budget, our mortgage calculator can help. We’ve also published any other calculators, including:
4. If you’re refinancing, check out our mortgage refinance calculator and see how much you can save by switching to the best mortgage deal.
5. If you’re looking for an interest-only deal, there are more risks involved. Check out our interest-only mortgage calculator and guide.
And, if you’re ready to jump right in, our home loan comparison tables (above) are the perfect place to start your search.
We've shortlisted top-rated mortgage brokers who go the distance for their clients in select cities around New Zealand:
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
- Trusted Mortgage Brokers in Auckland
- Trusted Mortgage Brokers in Hamilton
- Trusted Mortgage Brokers in Tauranga
- Trusted Mortgage Brokers in Napier and Hastings
- Trusted Mortgage Brokers in Wellington
- Trusted Mortgage Brokers on the Kapiti Coast
- Trusted Mortgage Brokers in Christchurch
Are you ready for a mortgage?
Our friends at LifeDirect Mortgages have a useful Mortgage Potential Calculator that gives you a clear snapshot of your borrowing ability in just a few clicks. Whether you're looking for a first home, refinance, moving home or an investment property mortgage, simply enter a few details, and you'll see:
- Your estimated borrowing amount
- Monthly, fortnightly, and weekly repayments
- Your deposit and income breakdown
- Tips to improve your mortgage readiness
It's easy to use, with clear visuals to help you understand your position. You do not need to enter any personal information.
Your Guide to the Best Home Loan Rates, Brought to You by LifeDirect MortgagesLifeDirect Mortgages, a trusted name in mortgage brokering across New Zealand, proudly supports this guide. We value LifeDirect Mortgages' commitment to helping New Zealanders secure the best home loan solutions, offering personalised advice tailored to your needs.
Whether you're a first-home buyer, looking to refinance, or exploring investment property options, LifeDirect Mortgages' experienced team makes the process simple, transparent, and stress-free. We proudly name them winners of our 2025 Editor's Choice for our favourite nationwide mortgage adviser. We encourage you to contact their friendly experts to discuss your mortgage needs - you can learn more about LifeDirect Mortgages with our detailed review or visit their website. Clear lender rates: Are you looking for mortgage rates in an easy-to-read table? LifeDirect Mortgages presents them clearly here. |
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