Structuring your home loan

Your interest rate won’t change or be affected by the market

• With a fixed rate, 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’ll be able to make extra payments up to $10,000 per calendar year without having to pay an Early Repayment fee. A minimum payment amount¹ may apply.
• If you’re looking to take out new lending with us, we can hold a fixed rate for you for up to 60 days from the date of your home loan summary. 
• If your rate is up for renewal, you can easily re-fix through online banking or the TSB app². If you don’t re-fix, your interest rate you will automatically move to the applicable variable rate at the end of the fixed rate term.

Your interest rate will move with the market

A floating/variable interest rate moves 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 allows you the flexibility to increase your payments, or make extra payments without having to pay an Early Repayment fee. 

When your home loan is not on a fixed interest rate, the relevant variable rate will apply. 

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, allowing you the flexibility to reach your goals faster. 

Having a combination mortgage means that you can benefit from the certainty of a fixed payment and can pay down in lump sums the floating part of your loan.

Your interest rate will move with the market

A revolving rate only applies to revolving loans and moves up and down with the current market. You can minimise interest costs by using your income and/or savings to lower your loan balance and make lump sum payments to your home loan at any time. Learn more about revolving loans.
 

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.