BNZ Home Loans

BNZ is a New Zealand-based bank that provides home loans, personal loans, credit cards, accounts, insurance and investments.

BNZ is the winner of Canstar’s Bank of the Year | Home Loans Award 2024. The award recognises the lender that not only delivers great customer service, but also provides mortgage products that combine the best features with the lowest costs.

Read more about BNZ's Bank of the Year | Home Loans win here!

BNZ logo

What types of home loans does BNZ offer?

BNZ offers the following home loans:

Classic (fixed rate)

A fixed interest rate will not change during the period (term) of the fixed rate that you choose. At the end of your fixed interest rate term, you can either choose a new one from the rates available at that time, or move to a floating interest rate.

Standard/Flybuys (fixed or floating rate)

Earn Flybuys while paying off your mortgage. If taken out on a floating interest rate you have the flexibility to make lump sum repayments of any size at any time without penalty. If on a fixed interest rate you may be able to make some additional payments each year.


A TotalMoney floating home loan uses the combined balance of your TotalMoney everyday accounts and subtracts this from the balance of your home loan, so you only pay interest on the difference. BNZ offers unlimited transactions, no transaction fees and $10 a month to link up to 50 accounts.

Rapid Repay/Revolving credit

You can put all your available money into this account to lower your outstanding balance – reducing the overall amount of interest you’ll pay. The credit limit on the account steadily decreases, ensuring you stay on track with paying off the mortgage and reducing the overall balance.

How do I apply for a BNZ home loan?

You can apply by phone or online, or via a BNZ Mobile Mortgage Manager, who will visit you in your home. For more details, check out the BNZ website.

Before you start your application for a home loan, you will need evidence of your:

  • Income, including salary, dividends, rent, business profits, etc
  • Expenses, such as food, rent, bills, loan debts, insurance, etc
  • Deposit – how much cash or equity you have, including any KiwiSaver investments
  • Personal details, including a form of valid photo ID, such as your passport or driver’s licence

Canstar’s free comparison tool gives you the ability to compare BNZ’s home-loan products with those from other lenders in the mortgage market. For more details, just click on the button below.

Compare Home Loans

Helpful Home Loans Information

Here are the four most common types of home loans:

Fixed-rate home loan

A fixed-rate home loan has an interest rate that is set for a fixed time period, commonly between one and three years years.

The main advantage of a fixed-rate loan is that it gives you certainty of your repayments over the fixed term.

The main disadvantage of a fixed rate loan is its inflexibility; generally, large additional payments cannot be made. You’ll probably also face a break fee if you decide to switch mortgages or lenders before the end of the fixed term.

Floating-rate home loan

A floating-rate loan has an interest rate that rises and falls over the period of your home loan. This can be in response to movements in the Official Cash Rate, or due to a business decision by your financial institution.

The main advantage of a floating-rate loan is its flexibility. While you must meet your minimum repayments, you can pay off extra lump sums whenever you want to. There are also no financial penalties if you decide to switch mortgages or lenders.

A disadvantage of a floating rate loan is that your minimum repayment amount can rise or fall at any time. Floating rates are also usually higher than fixed rates.

Interest-only home loan

Instead of paying off your principal loan, plus interest repayments, you only pay off the interest fees. This type of loan is most often used by investors who intend to sell the property for capital gains.

Interest-only home loans are not recommended for standard owner-occupiers, due to the increased long-term interest costs associated with not paying off the loan principal (the original loan amount).

Generally, interest-only home loans have a short time frame (up to five years) before they revert to a standard principal and interest loan.

Line of credit home loan

A line of credit home loan is a mortgage that allows you to borrow against the equity in your home. It gives you the ability and flexibility to access a portion of the equity at any time, up to an agreed limit, in a similar way to an overdraft.

You only pay interest on any sum borrowed, usually at a variable rate, which means you can make extra payments to reduce the sum owed at any time.

Other home loan features

There are many different features that can be attached to your home loan, which can include:

  • An offset account
  • A redraw facility
  • The ability to make extra repayments
  • The ability to split the loan between fixed and variable (floating)
  • The ability to switch to a different type of loan
  • Ability to pre-pay interest
  • Online functionality
  • Lending terms, including its LVR (loan to value ratio)
  • Guarantor security availability


Canstar Research
Award: Bank of the Year | Home Loans 2024

Written by: Bruce Pitchers | Last updated: April 19, 2024