Mortgage Comparison NZ

A mortgage is almost always the largest financial commitment a Kiwi household ever signs. Even a small difference in interest rate, fee structure, or fix term can add up to tens of thousands of dollars over the life of the loan. Comparing rates across the main banks and non-bank lenders, then negotiating, is the most powerful step a borrower can take, whether you are buying your first home, refinancing an existing loan, or topping up for renovations.

What mortgages cover in NZ

New Zealand mortgages are commonly split between table loans, where principal and interest reduce together over the term, and revolving credit or offset facilities, which use savings to reduce daily interest. Rates can be fixed for terms of six months to five years, or left on a floating rate that moves with the cash rate. Lenders typically require at least 20% deposit for owner-occupied homes, with low equity loans available subject to RBNZ LVR rules and an additional margin. First-home buyers may qualify for First Home Loan support, depending on income and price caps.

How to compare home loans in New Zealand

Compare the carded rate, the rate after negotiation, and any cashback contribution toward legal fees. Look at break costs if you ever need to leave a fix early, how the lender structures top-ups and offset accounts, and the lending criteria for self-employed or investor borrowers. Splitting your loan into multiple fixed terms can hedge against rate movement, but adds complexity at refix time. A mortgage adviser is paid by the lender, not you, and can often surface better deals than a single-bank application.

Related: see investment property loans for rentals, property development finance for multi-unit builds, and asset-based loans when serviceability rather than asset value is the constraint.

Common questions

Fixed or floating?

Fixing locks in certainty for the chosen term and is usually cheaper than floating. Floating is more flexible for lump-sum repayments. Many borrowers split the loan and run both at once.

How much deposit do I need?

Most banks want 20% for owner-occupiers and more for investors, though low-deposit lending is available in limited tranches. First Home Loan with Kainga Ora can reduce the deposit requirement for eligible buyers.

Should I refinance to chase a lower rate?

It can pay off, especially if the new lender offers cashback. Always factor in break fees on the existing fix, legal costs, and any tail clawback on cashback if you switch again within a few years.