How it works

Our variable rate home loan is a standard (table) loan, with a rate that rises and falls with the market. So when the market rates change, the rate you pay is likely to change too. This means:

  • if interest rates fall, you can choose to pay a lower interest rate and your minimum repayment can decrease (or, to pay your home loan off faster, you could keep your repayments the same)
  • if interest rates rise, you’ll pay a higher interest rate and your minimum repayment will increase.

Keep the same repayments when interest rates drop so you’re paying more than you need to and pay off your home loan faster. Because you’re already used to paying this amount, you won’t even notice.

Best for people who:

  • want to be able to make extra regular or one off payments whenever they like
  • have the flexibility in their budget to manage changes to their repayments if interest rates rise or fall
  • prefer not to be locked into an interest rate or think that interest rates are likely to fall
What next?
Consider teaming up your variable rate with a standard fixed rate or offset mortgage. If you’re ready to apply, click here.

Displayed interest rates subject to change. Kiwibank’s lending criteria, terms and conditions and fees apply.