Interest rates
1Kāinga Ora First Home Loans and Kāinga Whenua Loans with less than 20% equity, special interest rates apply (effective from 1 October 2023).
A default interest rate, which is your current interest rate plus 5% p.a. may be charged on each amount that is either overdue or over the limit of your home loan.
Displayed interest rates are subject to change.
2For all bridging loans, the interest rate will be 1% p.a. above Kiwibank's variable interest rate.
3Our offset ratio is 1. This means that for every $1 held in an offset account, $1 of lending is offset.
A default interest rate, which is your current interest rate plus 5% p.a. may be charged on each amount that is either overdue or over the limit of your home loan.
Displayed interest rates are subject to change.
Standard home loan fees
Demand fee |
When we demand payment of all amounts outstanding under your home loan because you are in default.
When we pay local authority rates that are due on security provided for your home loan.
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Discharge of security fee |
When you ask us to fully discharge your mortgage or security.
When you ask us to partially discharge your mortgage or security.
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Fixed rate break costs |
Prior to the end of the current fixed term, when you ask to:
The amount of the costs varies depending on the current interest rates and how long the fixed term has left to run. The way we calculate fixed rate break costs is described in Kiwibank’s Home Loan Terms & Conditions. |
Loan restructure fee |
When you ask us to change your existing home loan and/or security by:
$25 per change. |
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When you ask us to change your existing home loan and/or security by:
$50 per change. |
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Where we’re changing multiple existing loans, the fee applies per changed loan. We don't charge fees for the following changes:
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Top up fee |
When you ask us for additional lending on an existing home loan.
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Kāinga Ora – Lenders' Mortgage Insurance Fee |
A Lenders’ Mortgage Insurance premium is payable to Kāinga Ora - Homes and Communities to insure your First Home Loan or Kāinga Whenua Loan. This fee reimburses Kiwibank for the Lenders’ Mortgage Insurance premium Kāinga Ora - Homes and Communities charge to Kiwibank.
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Optional home loan service fees
Consent fee |
When your solicitor requests our consent to one of the following:
$30 per request. |
Courier costs |
When you ask us to deliver documents to you by courier either within New Zealand or overseas. |
Fixed rate lock option fee |
When you ask us for a fixed rate lock option. The amount of the fee may vary depending on the amount you want to lock in and how long you want to lock it in for. The amount of the fee will be set out in the Fixed Rate Lock Option Agreement. |
Investigation fee |
When you ask us to investigate something about your home loan that does not relate to the usual day to day operation of your home loan.
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Refinancing package fee |
When you choose to use our Refinancing Package, you will be using Kiwibank's legal transfer service instead of using your own solicitor. To qualify for the Refinancing Package free of charge, you’ll need to meet certain criteria:
Note: Your existing lender may charge break costs or discharge fees, and these aren’t covered as part of the Refinancing Package. If you don’t meet the above criteria, you may still be able to use our Refinancing Package to refinance to Kiwibank, but you’ll need to pay a Refinancing Package fee. This fee reflects the legal and other services carried out by Kiwibank agents. The Refinancing Package fee is calculated as follows:
The Refinancing Package is not available if:
If our Refinancing Package is not used when refinancing to Kiwibank, you’ll need to use your own solicitor. Your solicitor’s fees will not be covered by us. |
Early repayment limit
An early repayment limit applies to all home loans with a fixed term interest rate.
Extra repayments can be made each year during the fixed term, either through increased repayments or lump sum payments (as long as they don't total to more than the 5% threshold). You may need to pay fixed rate break costs if your total additional repayments are more than 5% of what your loan amount was when the term of your fixed loan started. The minimum home loan repayment will not be recalculated when a lump sum payment has been made; regardless of whether the lump sum payment is within or above the 5% early repayment limit. This means your repayments will never be lower than what they were at the start of the loan.
The early repayment limit renews either annually from the start of the fixed term, or at the time of re-fixing, whichever comes first.
With a variable home loan you're able to make as many additional payments as you'd like. You can make lump sum payments on your variable home loan via our mobile app at no extra cost.
Example 1: lump sum payment
On the 10th of October 2020, you place a loan with a balance of $100,000 on a fixed interest rate for two years. Each year you'd like to pay a lump sum off your fixed term loan without incurring fixed rate break costs.
- In the year 10/10/2020 – 09/10/2021, you're able to pay a lump sum of $5,000 (5% of $100,000 – the amounts owing on the fixed loan at the start date of the fixed term); and
- In the year 10/10/2021 – 09/10/2022, you're able to pay a further lump sum of $5000 (5% of $100,000).
Example 2: repayments above the minimum repayment amount
On the 10th of October 2020, you place a loan with a balance of $120,000 on a fixed interest rate for two years.
You realise you're in a position to make a repayment higher than the minimum repayment of $2,000 per month. You may increase your repayment for the fixed term up to $2,500 per month. This is made up of the minimum repayment of $2,000 plus 5% of the amounts owing on the fixed loan divided by 12 months ($2,000 + (5% × $120,000 / 12)).
Example 3: 6 month fixed rate in succession
On the 30th of March 2023 you start a fixed term of 6 months, with a loan balance of $80,000. During this fixed term you'd like to make a lump sum payment without incurring fixed rate break costs.
- During the fixed term 30/03/2023 to 30/09/2023, you're able to pay a lump sum of $4,000 (5% of $80,000 – the amount owing on the fixed component at the start date of the fixed term).
At the end of the fixed term you decide to re-fix for another 6 month term from 1st October 2023. The loan balance at the start of the new 6 month fixed term is $76,000.
- During this fixed term 01/10/2023 to 01/04/2024, you're able to pay a lump sum of $3,800 (5% of $76,000- the amount owing on the fixed component at the start of the new fixed term) without incurring fixed rate break costs.
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Sign up for the newsletterHome loan standard terms and conditions
Displayed interest rates are subject to change. Kiwibank’s lending criteria, terms and conditions, and fees apply.
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Fees effective from 1 April 2024. Fees are subject to change.