Loan types
Mortgage structures explained simply
There's more than one way to set up a home loan. Most people end up with a mix of two or three structures — fixed for certainty, revolving for flexibility, and maybe an offset if the numbers work. Here's what each one does and who it suits.
Fixed Rate
Lock your rate for 6 months to 5 years. Predictable repayments, no surprises. The most popular structure in New Zealand.
Learn moreFloating Rate
Your rate moves with the market. Costs more day-to-day, but no break fees and total freedom to repay or sell anytime.
Learn moreRevolving Credit
Works like a giant overdraft. Your pay goes in, spending comes out, interest is calculated daily. Can save thousands if you're disciplined.
Learn moreOffset Mortgage
Your savings reduce the balance interest is calculated on. Tax-efficient and clever — but only a few NZ banks offer it.
Learn moreInterest Only
Pay the interest, not the principal. Keeps repayments low but you don't build equity. Common for investors, limited for owner-occupiers.
Learn morePrincipal & Interest
The standard — pay back both the amount borrowed and the interest. Builds equity with every payment. The most common structure for homeowners.
Learn moreBridging Finance
Short-term loan to cover the gap when you buy before you sell. Higher rate, but solves a timing problem that would otherwise cost you the house.
Learn moreMost people use a mix
The right mortgage structure is rarely just one type. A typical setup might look like:
- —$400,000 fixed at 1 year (certainty on the bulk)
- —$150,000 fixed at 2 years (hedges against rate rises)
- —$50,000 revolving credit (flexibility to attack with extra payments)
We help you design the right mix based on your income, plans, and risk appetite. No structure is "better" in isolation — it depends on your life.
Not sure which structure fits?
We'll walk through the options and show you what each one means in real dollars for your situation. No obligation, no jargon.
