Pay off your mortgage faster
A little extra each payday, or a lump sum now: see the interest it saves and how much sooner the house is yours.
Pay off your mortgage faster
On a fixed rate, paying more than your bank allows can mean a break fee. Estimate one.
The rate is held for the rest of the loan, and the repayment stays the same, so extra money shortens the term rather than lowering the repayment. Most banks let fixed-rate borrowers pay a little extra each year without a fee (often around 5% of the loan, or a set amount per repayment); floating and revolving loans can usually be repaid any time. Check your own loan’s terms. A guide, not financial advice.
Questions
Is it better to make extra repayments or a lump sum?
Money paid sooner saves more interest, so a lump sum now saves more than the same total spread over years. Regular extras are easier to keep up. The calculator shows each on its own.
Will I pay a penalty for paying my mortgage off early?
On a floating or revolving loan, usually not. On a fixed rate, most banks allow a set amount extra each year without a fee; beyond that they can charge a break fee if rates have fallen since you fixed.
Should I pay off the mortgage or invest?
Paying off a mortgage earns a certain return equal to its interest rate, after tax. Whether investing beats that depends on the returns, risk and tax involved; a financial adviser can help weigh it for you.
Do extra repayments lower my repayment?
Not usually. Banks keep the repayment the same and the loan ends sooner, unless you ask them to recalculate it.
More home loan tools
Mortgage repayment calculator
Weekly, fortnightly or monthly repayments and the interest over the loan.
How much can I borrow?
An indicative borrowing limit and a readiness check, from your own figures.
Break fee calculator
A rough cost of breaking a fixed rate early.
Switching banks
Whether moving your mortgage pays, after every cost.
Buying your first home
The steps from saving a deposit to settlement day.
What could your KiwiSaver buy?
Your balance as a price, and homes at it in the suburb you pick.
KiwiSaver first-home withdrawal
What your KiwiSaver could put toward a deposit.
First Home Loan and low deposits
Buying with 5–20% deposit, and what it costs.
Mortgage pre-approval
What it is, what to bring, and how long it lasts.
Today’s mortgage rates
Every lender’s advertised rates, side by side.
Home loan affordability by town
What a median home costs against local incomes, town by town.
Find a mortgage adviser
Advisers and firms near you.