BNZ’s unique Tailored Repayments could save thousands of dollars in interest.

So how does it work?

Every year (on the date you originally drew down your home loan) you’ll be given the option to accept a small automatic increase in your repayments. You can choose to accept or decline this increase depending on what you can afford.  Each small increase you accept year on year will help you pay off your home loan faster.  

Because your repayments only increase by a small amount each year, you’ll hardly notice the difference in your day-to-day life. You also have the option to reduce your repayments back down to the minimum further down the track, as long as your loan doesn’t extend beyond the original documented term. You get the best of both worlds – the certainty of regular repayments plus the flexibility to pay it off faster.

What difference could Tailored Repayments make?

With a 30-year, $300,000 home loan at 6% p.a., you could save more than $140,000 in interest and clear the loan at least 11 years sooner with tailored repayments compared to a standard table loan. For full details click here.

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This article is intended as a general discussion only, and is based on selective information which may not be suitable for your purposes. BNZ strongly recommends the recipients take independent legal, investment and financial advice prior to making any investment decisions.