-
Link up to eight everyday and savings accounts* to reduce the amount of interest you pay on your offset loan.
-
You'll pay a variable interest rate – it can change as the market does.
-
Flexibility to make extra payments whenever you like.
-
You can increase your regular repayments without incurring a fee.
How it works
Modal to play video
-
What's an offset loan
An offset home loan (also known as an offset mortgage) is linked to selected Kiwibank everyday or savings accounts. The balance in these accounts is used to offset the amount of interest you pay on your offset loan.
For example, if you have a home loan of $200,000 and have $10,000 in your linked accounts, you’ll only pay interest on $190,000. The smaller the difference between your offset loan and account balance(s), the less interest you'll be charged.
-
Variable interest rate
An offset loan has an offset variable interest rate, so the interest rate you pay can change at anytime.
-
Linked accounts
You can link up to eight Kiwibank everyday or savings accounts*. These accounts can be a combination of your own accounts, partner (marriage, civil union or de facto), spouse, child, parent or joint borrowers accounts.
Interest is calculated daily, so the more you have in your linked accounts day-to-day, the more you'll save.
Let us know which accounts you’d like linked, as it’s not done automatically.
-
Credit interest
Because your linked accounts are offsetting the interest you’re paying on your offset loan, you won’t earn any credit interest on them.
If you no longer want an offset home loan, we can just de-link your accounts and if eligible they'll go back to earning credit interest.
-
Making repayments
You'll still have a minimum repayment amount which you'll pay on your set repayment date. But as a result of the offsetting, a higher portion of your repayments will go towards your principal so you’ll pay off your home loan faster.
You can also make extra repayments whenever you like without paying a penalty.
-
Mix it up
You don’t have to put your entire home loan on an offset.
You could also put parts of your home loan on a fixed rate home loan, variable rate home loan or revolving home loan.
-
Offset ratio
Our offset ratio is 1. This means that for every $1 held in an offset account, $1 of lending is offset.
Start your home buying journey
Whatever stage you're at, we have home loan specialists and tools to help you through the process.
Talk to a specialist
Our home loan specialists can walk you through the process of buying a home and discuss what your options are.
Find a specialistTry our calculators
Looking to fine tune the structure of your home loan or work out how much you might be able could borrow? Use our calculators to compare your options.
Calculate nowGet first home buyer tips in your inbox
Be at the top of your home buying journey with tips, offers, support and helpful information from our experts delivered straight to your email inbox.
Sign up for the newsletterGet the right home loan for you
Home loan standard terms and conditions
Displayed interest rates are subject to change. Kiwibank’s lending criteria, terms and conditions, and fees apply.
Retail products aren't available to financial institutions or wholesale customers.
An offset home loan is only available for individual borrowers only (up to a maximum of two borrowers). It's not available for trusts or companies for example.
*Your offset home loan can be linked to Free Up, Online Call, Revolving, First Saver, Fast Forward Saver, Back Up Saver, Now, Front Runner and Bill Blaster accounts. Your offset home loan cannot be linked to Term Deposits, KiwiSaver, Notice Saver, Business Edge, Business Online Call, PIE Online Call, PIE Term Deposits, Business Performer and any non-Kiwibank account.