Guides to your mortgage repayments
Plain English guides to repaying a New Zealand home loan, with every figure worked out by the same engine as the calculators.
Mortgage break fees in NZ: why banks charge them and how they work
A break fee is the bank’s reasonable estimate of what it loses when you repay a fixed rate early. If rates have fallen since you fixed you usually pay one; if they have risen, usually not.
Read the guide →Extra mortgage repayments: how much they save and bank limits
Small regular extras cut years off a mortgage. On $600,000 over 30 years at 5.06%, an extra $250 a month saves about $97,871 and 4 years 5 months. On a fixed rate, keep within your bank's allowance to avoid a break fee.
Read the guide →Fixed vs floating mortgage rates: how to weigh them up
Fixed rates give certainty for a set term but limit extra repayments and can carry break fees; floating gives flexibility at a higher rate today. As at 10 November 2026 the average floating rate is 6.31% and the average one-year fixed rate 5.06%.
Read the guide →Fortnightly vs monthly mortgage repayments: which saves more?
A true fortnightly repayment saves only a few hundred dollars over monthly. Paying half your monthly repayment every fortnight adds one extra month a year and, on $600,000 at 5.06%, saves about $104,855 and nearly 5 years.
Read the guide →How NZ banks calculate mortgage interest: daily, monthly, rounding
Banks calculate interest every day on your balance and add it to the loan monthly. Calculators divide the yearly rate by 12. The two give almost the same answer, but month-to-month interest varies with the number of days.
Read the guide →How mortgage repayments work: interest, principal and the formula
Most NZ home loans are table loans: the repayment stays the same, but early on most of it is interest. On $600,000 over 30 years at 5.06%, the first month is $2,530.00 interest and only $712.97 off the loan.
Read the guide →How to refix your mortgage: what happens when a fixed term ends
When a fixed term ends you can refix for a new term, split across terms or go floating; if you do nothing, the loan usually rolls onto the floating rate. Compare repayments, flexibility and timing, not just the lowest rate.
Read the guide →Interest-only home loans: what they cost and what happens after
Interest-only repayments cover only the interest, so the loan does not shrink. On $600,000 at 5.06%, that is $2,530.00 a month, but 5 years of it adds about $42,896 of interest and lifts the repayment to $3,528.55 when it ends.
Read the guide →Lump sum mortgage repayments: keep the repayment or lower it?
Keep paying the same repayment after a lump sum and you save far more. A $20,000 lump sum after year 1 on $600,000 at 5.06% saves about $62,136 if you keep the repayment, but only about $18,176 if you lower it.
Read the guide →Struggling with mortgage repayments? What to do and where to get help
Contact your bank as early as you can. The law gives you the right to ask for a hardship change, such as a longer term or a payment break, and free help is available from MoneyTalks on 0800 345 123.
Read the guide →Mortgage repayments by loan size: $300,000 to $1,000,000
At the average one-year fixed rate of 5.06% over 30 years, every $100,000 borrowed costs about $540 a month. A $600,000 loan is $3,242.97 a month, $1,496.04 a fortnight or $747.87 a week.
Read the guide →Mortgage term length: 30 years vs 25 years, and shorter
A shorter term means higher repayments but far less interest. On $500,000 at 5.06%, 25 years instead of 30 costs $237.98 more a month and saves $90,751 of interest.
Read the guide →The OCR and mortgage rates: how the cash rate flows to your loan
The OCR is the Reserve Bank’s benchmark rate, 2.75% since 2 September 2026. Floating rates tend to move with it; fixed rates move more on what markets expect it to do next.
Read the guide →Offset mortgages in NZ: how they work and which banks offer them
An offset loan charges interest on your loan balance less the money in linked accounts. $30,000 linked to a $500,000 loan saves about $156 a month at 6.25%, but offset rates are floating and higher than fixed specials.
Read the guide →Paying off your mortgage early: strategies compared with figures
Every extra dollar paid early saves interest for the rest of the loan. On $500,000 at 5.06%, half the monthly repayment each fortnight saves $87,852; $250 a month extra saves $94,344.
Read the guide →Revolving credit home loans: how they work and who they suit
Revolving credit is a home loan that works like a large overdraft. Every dollar sitting in it cuts your interest that day, but nothing forces you to pay it off.
Read the guide →Split home loans: fixing across terms and keeping some floating
A split loan puts parts of your mortgage on different rates and terms. Spreading refix dates means no single rate change hits the whole loan, and a floating part lets you pay extra freely.
Read the guide →Switching banks for your mortgage: costs, cashback and clawback
Switching can pay when your fixed rate ends or a cash contribution outweighs the costs. Mid-term, the break fee often cancels most of the rate saving, and cash contributions usually come with a clawback of up to four years.
Read the guide →Table vs reducing loans: repayments and total interest compared
A table loan has the same repayment throughout; a reducing loan repays the same principal each time, so it starts higher and falls. On $600,000 over 30 years at 5.06%, the reducing loan costs about $110,802 less interest but starts $953.70 a month higher.
Read the guide →Weekly mortgage repayments: true weekly vs a quarter of monthly
A true weekly repayment costs about the same as monthly. Paying a quarter of the monthly repayment each week adds one month a year and, on $600,000 at 5.06%, saves about $105,125 and nearly 5 years.
Read the guide →More calculators
Other repayment questions
Extra repayments
Time and interest saved by paying more or making a lump sum.
Open →Fixed or floating
Your repayment at every term, refixing and split loans.
Open →Break fee
An estimate of the fee for leaving a fixed rate early.
Open →Interest only
What interest only costs, against table and reducing loans.
Open →Mortgage rates
Every big bank’s advertised rates, dated, with the OCR.
Open →