Compare home loan types

The best home loan option for you, depends on your situation. Below you’ll find some of the pros and cons of each, plus a comparison. You can also mix and match to get the best of each.

Need help deciding? Talk to our home loan experts, they’ll talk you through the options and help you get a home loan that suits you.


Loan type

Good if…

Things to think about

Fixed:

Your interest rate and repayments stay the same for the fixed rate period (from 6 months to five years).

  • You need certainty so you can budget accurately.
  • You don’t intend to make extra repayments during the fixed rate period.
  • It’s not as flexible as a floating rate loan – if you make an extra repayment on your loan that is the first extra repayment in that year, and it’s no more than 5% of the loan amount you owe on your loan when the repayment is made, you won’t be charged an early repayment recovery.

Floating:

Your interest rate can go up or down in line with changes in the market.

  • You want the flexibility to make extra or lump sum repayments anytime – which means you could save on interest costs and repay your home loan faster.
  • You think your circumstances might change in the near future.
  • If interest rates rise, so will your repayments – so if you’re on a tight budget, you may want to consider putting at least some of your loan on a fixed rate.

Flexible:

Put all your available money into this all-in-one home loan and transaction account. You could reduce your interest costs and may pay off your loan sooner. It gives you access to credit when you need it.

  • You want flexible access to credit.
  • You plan to credit your salary or other income to the account to reduce the outstanding balance and save on interest costs.
  • You’re good at managing your money.
  • You need to be disciplined with your finances to get the best out of this option.

Loan information

Fixed Interest Rate

Flexible Home Loan

Floating Interest Rate

Benefits

Budget with confidence and protect yourself from interest rate rises during the fixed term.

Put all your available money into this all-in-one home loan and transaction account. You could reduce your interest costs and it gives you access to credit when you need it.

Flexibility, the ability to make extra repayments or switch to a fixed interest rate at any time.

Minimum loan term

No minimum term

No minimum term

No minimum term

Maximum loan term

30 years

No set term

30 years

Minimum loan amount

No minimum amount

No minimum amount

No minimum amount

Repayment frequency

Weekly

Fortnightly

Monthly.

No set frequency

Weekly

Fortnightly

Monthly.

Extra repayments

Yes - early repayment recovery and administration fee may apply^

NA

Yes

Yes^^ (on application)

NA

Yes^^ (on application)

Yes (on application)

Yes (on application)

Yes (on application)

Interest only option

Conditions apply and subject to approval:

  • Available for up to 2 years for lending on owner occupied property;
  • Available for up to 5 years for lending on residential investment property.

NA

Conditions apply and subject to approval:

  • Available for up to 2 years for lending on owner occupied property;
  • Available for up to 5 years for lending on residential investment property.

Monthly fees

Nil

$12.50

Nil

Application fee

Up to $500 for owner-occupied property. Up to 1% of the loan amount for all other lending.

Up to $500 for owner-occupied property. Up to 1% of the loan amount for all other lending.

Up to $500 for owner-occupied property. Up to 1% of the loan amount for all other lending.


Mixing and matching

You can have a mix of different types of loans to suit your needs. For example:

  • If you want certainty but think you’ll have a bit of extra cash in the future (e.g. a bonus), one option could be to fix part of your lending on a fixed rate and leave a small part on a floating rate. Then you could use your extra income to make a lump sum repayment on the floating rate loan for no fee.
  • If you’re not sure what interest rates will do, you could spread the risk by splitting your loan across floating and fixed rate home loan terms.

If you’re planning to do some renovations in the future, you may want to have part of your home loan as a flexible loan so you have access to credit when you need it. We can explain all the options and help you decide the best option for you - contact us now.


Home loan top-ups

You can apply to borrow more money on the same terms if you have an ANZ Floating Rate Home Loan or a Flexible Home Loan (a fee may apply).

If you have an ANZ Fixed Rate Home Loan you can apply for a separate loan. The interest rate will only apply once you start using your loan.


Interest only

With an interest-only home loan, you start out by paying only the interest due on the amount you've borrowed. Because you're not repaying any of the principal, your repayments aren't as high as with other loan types.

You can choose either a fixed or floating interest-only loan for a term of up to 2 years for lending on owner occupied property, or up to 5 years for lending on residential investment lending. After that, you have to either pay off your original loan amount (the principal) or change to a table loan or a reducing loan.

Interest-only loans are useful if:

  • You need a loan now, but don't want to make full repayments straight away – for example ‘bridging finance’ when you need money for a new home before you've sold your old one.
  • You know you'll have enough money to pay off your original loan before the end of your interest-only term – for example, if you have a large investment due to mature in three years' time. Remember at the end of the interest-only term, you will need to pay off the principal.

*Lending criteria apply. A loan approval fee may apply. A low equity premium may apply where a loan amounts to over 80% of the property's value. A registered valuer's report will also be required for lending over 80% of the property's value.

^Any extra repayment on your loan that is the first extra repayment made in that year, that’s no more than 5% of the outstanding loan amount owed at the time the repayment is made, will not incur an early repayment recovery

^^ANZ Home Loan Repayment Holiday are available for up to three months Application criteria and terms and conditions apply. Not available on Interest Only loans

ANZ lending criteria, terms and conditions and fees apply to all loans.

A copy of the Reserve Bank Disclosure Statement published by ANZ Bank New Zealand Limited may be obtained on request from any ANZ branch.

This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you would like to speak to an ANZ Authorised Financial Adviser, please call 0800 269 296.

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