NZ mortgage repayment calculator

How mortgage repayments work in New Zealand

Mortgage questions, answered

How are mortgage repayments calculated?

Repayments are amortised: a fixed amount each period that pays the loan to zero over the term. Each payment covers that period's interest first, and the rest reduces the principal, so early on you pay more interest, and later more principal.

Do weekly or fortnightly repayments save money?

On its own, frequency makes only a tiny difference. This calculator shows the true equivalent repayment for each frequency, so your fortnightly figure is the monthly one split to match, and it clears the loan in the same time. The real saving comes from paying extra. For example, if you instead pay half your monthly repayment every fortnight, that is 26 half-payments (13 months' worth) a year, which does pay the loan off faster. That accelerated amount is a little more than the true fortnightly figure shown here.

What interest rate should I enter?

Use the rate your bank has quoted (or the current advertised fixed rate). Rates change regularly in New Zealand, so treat the result as an estimate and re-check when your fixed term rolls over.

Does this include rates, insurance or fees?

No. It's principal and interest only. Add council rates, house insurance, and any bank or LMI fees separately when working out what you can actually afford each week.

How big a deposit do I need in New Zealand?

Banks usually want a 20% deposit for the sharpest rates. You can sometimes buy with less, though a low-equity premium or fee often applies under 20%, and First Home Loan or KiwiSaver first-home options can lower the bar. A bigger deposit means a smaller loan and less interest overall.

What's the difference between a fixed and floating rate?

A fixed rate locks your rate for a set term (commonly 6 months to 5 years), so repayments don't move until it rolls over. A floating (variable) rate can change at any time but lets you make extra repayments freely. Many Kiwis split their loan across both.

What happens when my fixed term ends?

You re-fix at whatever rates are on offer then, or roll onto floating. Because rates change, your repayment can jump or drop at rollover, so it's worth re-running this calculator each time your fixed term is up.