Compare New Zealand home loan interest rates

Table of Content

• Want some help to get a home loan?
• When Will Interest Rates Go Down?
• What type of borrower are you?
• Interest rates & fees
• How much can I afford to borrow?
• HSBC New Zealand 1 Year Fixed

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. You have one account to manage your mortgage payments, expenditure and your income. As your pay goes in each week, fortnight or month it acts like one big mortgage payment.

You’ve also got to remember you can also negotiate your interest rate with a bank . Buying a property is usually the most expensive purchase a person will make in their life. Making the home loan journey easy for you anytime, anywhere.

Want some help to get a home loan?

Interest rates are on the rise, so best to lock in a rate sooner than later. See our range of handy home loan calculators to help you decide your best next move.

These days most mortgages allow extra repayments, although some fixed-rate mortgages do not. Most borrowers in New Zealand opt for principal and interest mortgages because as you repay the loan, you gradually build home equity and own more of your property. Equity, if you’re unaware of the term, refers to the value of your home minus any debt you owe on it.

When Will Interest Rates Go Down?

We’re here to provide a single source of mortgage information, to make online research easier. And because we’re completely independent, we tell it like it is – without a sales pitch. By reading our helpful guides, mortgage insights and latest news, you’ll get an all-round education that supports better home finance decision making.

When you choose to use our Refinancing Package, you will be using Kiwibank’s legal transfer service instead of using your own solicitor. When you ask us for new lending on a new loan or an existing home loan, or you are increasing an existing loan. When we demand payment of all amounts outstanding under your home loan because you are in default. Thousands of Kiwis have trusted us with their decisions.

What type of borrower are you?

Be wary of early repayment fees, and if you repay a fixed rate mortgage early you might have to pay a cost. There are many types of mortgages, with different interest rates, fees and flexibility which can affect the repayment amount and the mortgage term. The different mortgage types include fixed interest rate mortgages, floating rate mortgages, table loans, revolving credit loans, offset loans, reducing loans and interest-only mortgages. 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. Look no further, as glimp’s mortgage calculator will help show you what your monthly repayments will be and it will help you find the best mortgage rate from a variety of providers. Simply enter the amount you want to borrow, your preferred loan period and the period for which you’ll be paying a fixed mortgage rate for and we’ll show you your best options.

Find the best mortgage rates and compare mortgage providers now. And one of the best places to start your hunt for the lowest mortgage rate is Canstar’s home loan database, ratings and awards. However, there remains a wide disparity between the lowest rate on our tables, 5.75% (2-year fixed), and the highest, 8.09% (1-year fixed rate). So for canny consumers who are prepared to do their homework and search out the lowest mortgage rates, there are still savings to be made. Canstar may earn a fee for referrals from its website tables, and from sponsorship of certain products. Fees payable by product providers for referrals and sponsorship may vary between providers, website position, and revenue model.

Interest rates & fees

If you do not meet the above criteria, you may still be able to use our Refinancing Package to refinance to Kiwibank, however you will need to pay a Refinancing Package fee. Where we’re changing multiple existing loans, the fee applies per changed loan. When we pay local authority rates that are due on security provided for your home loan.

He has written for Money Magazine, Homely, and for multiple banks and lenders. Richard trained as a high school teacher but found it easier to manage personal finances than a classroom full of kids. Before joining Finder, he edited textbooks and taught English in South Korea.

If you fix for the one-year rate, then you’ll pay a lower interest rate. In 2020 the one year mortgage interest rate was around 2.5%, and the 5-year was 2.99%. Mortgage adviser, Peter Norris says the question of whether to fix for 3 or 5 years really comes down to how high you think the market is going to send interest rates. The current 3-5 year interest rates could look expensive in the next few years. To do this, many Kiwis will use a revolving credit or offset facility.

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. In addition, it’s a good idea to consider how much rental income you receive for the property when deciding how much you can afford in mortgage repayments. If the rent doesn’t cover the mortgage repayment, an interest-only mortgage could help to keep your monthly costs affordable.

How much can I afford to borrow?

Their experience is unrivalled, and they will happily answer your questions about all things concerning the process of owning a home. 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. Here’s what happened in 2022 for mortgage interest rates. If you are changing lenders and your deposit is not currently held with the lender you will need to prove that you have the deposit. You can do this via bank statements covering the last 6 months.

Interest Rate Predictions for 2022 and a review of 2021

Table of Content

• Kiwibank 1 Year Fixed
• Reasons to review your mortgage
• If Interest Rates Are Rising Is There A Risk Of “Panic Selling”?
• Latest Owner-Occupier Mortgage Rates

Instead, you just pay the interest charges and ignore the loan principal. However, eventually, you have to pay back the mortgage, and making interest-only repayments for a while makes the overall loan more expensive. New Zealanders typically borrow between 80% and 90% of a property’s value, which means you need to save or gather together a deposit worth 10-20% of the property’s value. The difference between the mortgage amount and your property’s value is the deposit that you must pay. The percentage of your home’s value compared to your mortgage amount is your loan to value ratio .

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Kiwibank 1 Year Fixed

Get an idea of how much it might cost based on some quick questions about your home and renovation plans. Whatever your situation may be, we can help put a solution together to help you pay off your home loan faster and pay less interest. Minimum 20% deposit and new residential security required. But as a rule of thumb, the lower your deposit, the higher your interest rate will be. The commercial rates are typically much higher than the residential rates. Well, low interest rates tend to boost the economy by encouraging everyone to buy stuff, whereas higher rates tend to slow the economy back down.

Reducing or Straight Line mortgages pay off the same amount of principal with each payment but a reducing amount of interest. The overall payment amount starts high and decreases in a straight line over time. As you are paying a higher amount of interest in the beginning you pay less total interest over the life of the loan. Very similar to a revolving credit mortgage but uses separate accounts. You operate your mortgage account as usual with payments coming out each week, fortnight or month.

Reasons to review your mortgage

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 fees and provided by a trusted lender. If you’re looking to buy an investment property, consider that investment loans typically have slightly higher rates than owner-occupier mortgages. With more capital changes in the pipeline, the rate difference between investment property and owner-occupied property is likely to become greater. When you apply for a home loan, you’ll need to decide how long you want the fixed term to be. 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.

There are many types of mortgages, differentiated by interest rate, terms, fees and flexibility. Each one of these factors affects how much the loan costs and how long it will take to pay off. Below you’ll see a summary of the home loan interest rates and terms currently offered by many of New Zealand’s top lenders. The offers have been grouped into lender types which you can sort by term or rate. For a quick glance at todays best rates, view the top 6 rates here.

If Interest Rates Are Rising Is There A Risk Of “Panic Selling”?

Cash backs are worth 0.50% - 0.80% of your mortgage balance and the amount also depends on what rates you get. Mortgage brokers are constantly negotiating rates, so are in a good position to know what deals are available. When you choose a fixed rate home loan, the interest rate you pay stays the same for a given period . At the end of the term, you can either fix again for a new term or switch to a floating rate.

Borrowers who want more long term certainty opt for a three-year fixed rate. Try out our refinance calculator to see if you could save on interest or get cash immediately by refinancing to a new bank. All of New Zealand’s latest mortgage rates in one place. Check-rates.com confirms availability and rates by searching hundreds of travel sites at the same time, allowing to instantly compare hotel details, rates and taxes from such websites.

And if your situation is complicated, by something like overseas assets or a low deposit, you definitely want to be working with one of our top performing mortgage advisers. These lenders typically have a higher risk tolerance and traditionally cater to in the self-employed market and lower documentation lending. They're bound by lending restrictions applied by the New Zealand and Australian regulators such as LVR (loan-to-value) limits and other macro-prudential tools. The four major banks have 87 percent market share of mortgages. An offset mortgage allows the borrower to offset any savings against their mortgage before interest is calculated.

Richard has a Bachelor of Education, a Graduate Certificate in Communication and is currently studying a Certificate IV in Finance and Mortgage Broking. Mortgage brokers in New Zealand are licensed professionals who can make a mortgage comparison for you and find you a suitable loan. Brokers can’t compare the whole market, but they have access to a panel of lenders. So a broker not only helps you pick a mortgage but also guide you through the paperwork and application to settlement.

We calculate this as it gives our users a better way to compare each loan. Get your finance in place before you begin viewing properties, that way you can react quickly if the perfect property comes along. Credit Unions and Building Societies are not for profit co-operative institutions owned by their members. Their mission is to provide their members with affordable financial services. When you open an account you become a member, this enables you to vote at the Annual General Meeting or even put yourself forward as a board member. Banks are heavily regulated and must comply with restrictions about who they lend to.

May be charged on each amount that is either overdue or over the limit of your home loan. This means that for every $1 held in an offset account, $1 of lending is offset. Take out a new ANZ Home Loan of $100,000 or more and you could get a cash contribution of 1%, up to a maximum of $20,000.

Compare mortgage providers

The rates highlighted above in our rates table are the ‘leading’ bank rate of the day, these rates may not be available to everyone. The highlighted rates may be ‘specials’, have ‘LVR requirements’ are for ‘owner occupiers’, or other ‘fine print’ to meet the eligibility criteria. Please check with the relevant lender directly to get information specific to your own circumstances.

The valuation fee covers your lender’s cost to have your property valued by an expert. One-off fee many lenders charge during the application stage. That means you can sell your property and buy a new one with the same loan. For example, if you want to buy a home worth $700,000, you need to save $70,000 to have a 10% deposit.