The right home loan structure can save you money and give you flexibility. You can choose from fixed, floating and revolving, or a mix that works for you.
Fixed
Your interest rate won't change or be affected by the market.
- Your interest is fixed from the start and stays the same for the term you choose – for example from 6 months to 5 years.
- This option may make budgeting easier, because your payments will stay the same over the fixed rate term you’ve chosen.
- You can have multiple loans, with different terms, rates, and payment frequencies.
- Keep in mind that if you decide to break a fixed term early, you may need to pay an Early Repayment fee. A minimum payment amount may apply1.
- If your rate is up for renewal, you can easily refix through online banking or the TSB mobile app2. If you don’t refix, your interest rate will automatically move to the current variable rate at the end of the fixed rate term.
Floating/Variable
Your interest rate will move with the market.
- If the variable interest rate increases, your required payment will automatically increase if your current payment is not enough to repay your home loan within your loan term. If interest rates decrease, your actual payments will not change unless you ask us to reduce them.
- If you’re looking to pay off your home loan faster, a floating/variable rate gives you the flexibility to increase your payments, or make extra payments whenever you like without having to pay an early repayment fee.
Revolving
A revolving loan is a transactional account and home loan all in one.
- Have the flexibility to access, repay, and redraw funds anytime, up to your credit limit.
- Minimise interest by using your income and/or savings to reduce your loan balance.
- A revolving loan has its own variable interest rate which moves up and down with the market.
- Keep in mind that easy access to funds means you’ll need to budget carefully to reduce your balance over time.
- There's no maximum term, but we can ask you to repay the revolving loan at any time.
- Minimum limit: $5,000.
Combination
Combine fixed and floating/variable for the best of both worlds.
- Having a combination is just like it sounds – you have part of your loan fixed and the other floating. You can decide what portion of your loan is fixed and floating/variable, giving you the flexibility to reach your goals faster.
- Having a combination loan means that you can benefit from the certainty of a fixed payment and can pay down the floating part of your loan in lump sums.
Choose how often you make your repayments
Set your repayment frequency to suit your lifestyle. Depending on the type of loan you have, you could choose to make your repayments weekly, fortnightly or monthly.
Need to buy before you sell?
A bridging loan could help you buy your next home before selling your current one. With an interest-only loan to cover the gap, you’ll have flexibility while you get ready to sell. Just keep in mind that you’ll have two loans until you sell your current home, so you'll need to make sure that you can manage both home loan repayments.
Bridging loans are subject to specific lending criteria and may involve higher costs, especially if your current home takes longer to sell. It's important to understand if a bridging loan is right for you, so talk through your options with one of our lending specialists - they can help find a solution that works best for you.
Important information
1For some methods of payment, we may set a minimum payment amount that you must pay each time you choose to repay some of your loan early. If we do set a minimum payment amount, you can find this on our home loan rates, fees and agreements page.
2There are currently some exceptions to re-fixing your loan through online banking or the TSB app. Please contact us if you can't re-fix through online banking or the app.
General Lending Terms and Conditions:
- TSB may approve residential loans with less than a 20% deposit subject to bank funding requirements.
- An early repayment fee may apply on fixed rate loans.
- All interest rates are subject to change.
- Lending criteria, terms and conditions, and fees apply.
- When you bank with TSB you agree to our General Terms.