Kiwibank Home Loans

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

Kiwibank is one of the winners of Canstar’s most recent Outstanding Value | Investment Home Lender awards. The awards recognise the financial institutions that deliver the best mortgage products for Kiwi property investors.

The award comes on the back of recognition from our expert research panel for two of Kiwibank’s mortgage products that deliver Outstanding Value:

  • Investment Fixed Home Loans
  • Investment Floating Home Loans

Kiwibank logo new

What types of home loans does Kiwibank offer?

Kiwibank offers the following home loans:

Fixed Rate

There’s still wiggle room with a fixed rate mortgage. You can make extra repayments in any year of a fixed term loan of up to 5% of the loan amount at the start of the fixed term. You can do this by increasing your regular repayments or making lump sum payments. 

Variable Rate

With a variable rate (also known as a floating rate), the interest you pay on your home loan can go up or down. If interest rates fall, you’ll pay less in interest. You’ll also pay down your home loan faster, as Kiwibank keeps your repayments the same. If you want to reduce your repayments, you can request this.

Offset Mortgage

You can link up to eight Kiwibank savings and everyday accounts to your home loan. The balance in these accounts are ‘offset’ against your mortgage. You’ll subtract the balance of your linked savings and everyday accounts and only pay interest on the difference.

Revolving Home Loan

The most flexible of Kiwibank’s home loans – a revolving home loan is like a big overdraft. Put all your income into the one account to lower the balance of the account and pay less in interest.

You need to be disciplined, as there are no set repayments and you can withdraw or deposit money up to your credit limit whenever you like.

How do I apply for a Kiwibank home loan?

You can apply by phone or online, or via a Kiwibank Mobile Mortgage Manager, who will come to you. For more details, check out the Kiwibank 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 Kiwibank’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: Outstanding Value | Home Lender 2024

Investment Fixed | Investment Floating

View the Outstanding Value Home Lender Awards

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