What will my home loan repayments be?
Disclaimer: The below guide is general in nature and do seek individual financial advice to see how this applies to your situation. Our experienced advisers are on hand to help at no cost to you (T’s and C’s apply)
When buying a home, it’s important to make sure that we know the financial arrangement we are getting into.
Our Home Loan Calculator can not only calculate this for you, but below we have given a guide to using this to make sure you will have as much information as possible and be able to calculate this for yourself in future. We want you to have as much knowledge as possible in regard to your home loan.
Loan Amount
This is not your purchase price. This is your purchase price minus your deposit.
usually your loan amount will show on your letter of approval, once it is specific to a property, not at the general preapproval stage.
EG: Purchase price: $600,000 - Deposit $120,000 = Loan Amount $480,000
Loan Term
The loan term is not the same as your fixed term. So if we are fixing the rates for 2 years, likely the loan term will be for longer than this.
The loan term is the total time it will pay off your loan in full. Typically this is 30 years, but it can be lower if you are above 40 years old.
Check on your approval letter or with your adviser for the correct loan term for you.
Interest Rate
Often the interest rates are not fixed until we are unconditional on finance. Some lenders, like Kiwibank and SBS can hold rates before going unconditional.
If you do not yet have the final rates for your lending, we recommend using the rates advertised online by your bank as a guide.
Interest.co.nz’s page of current interest rates can be a useful guide. Do be aware though, there can be a delay between the bank changing their rates and interest.co.nz updating this on their page. Consult your banks online advertised interest rates too.
Repayment Frequency
Contrary to popular belief, the frequency of repayments will have little effect over the course of a 30 year loan.
For this, choose the frequency that is best for you. For example, if you are paid fortnightly, we recommend setting it to fortnighty.
After this, you will have your final repayment amount.
