Early repayment charges

The cost of repaying a fixed interest rate home loan before it’s due.

A fixed interest rate home loan is a contract between you and the lender. You agree to steadily repay the loan by a certain date, no sooner and no later. The lender agrees to keep the interest rate the same over the selected fixed rate period. Like any contract, it's important to understand what you're getting into. That's why we take the time to explain things carefully and will answer your questions before you put pen to paper.

We recognise that things can change

Sometimes unexpected things happen and you might want to break your contract by repaying your fixed interest rate home loan before it's due. You may decide to switch to another interest rate before the end of the fixed rate period. You could also be making a full or partial lump-sum repayment, or increasing your regular payments. We've allowed for this in our fixed interest rate home loan contracts, however early repayment charges may apply.

Why is there a charge?

The bank charges borrowers an early repayment charge to recover the loss the bank incurs when a loan is partially or fully repaid, the customer switches to another interest rate, or a loan is repaid at an accelerated rate before the end of the fixed rate period.

To find out more information on early repayment charges, please refer to the fact sheet that relates to your home loan;

Options available

If you have a fixed rate home loan and are moving houses, you can avoid paying an early repayment charge using our Portable Home Loan feature by taking your home loan with you.

If you want to pay the early repayment charge and take a new loan at a lower rate for a longer period, or for more information, talk to your BNZ representative.

If you'd like more help

Talk to us and we can give you an example calculation on your loan, as if you're breaking it on that day. We can inform you of the actual early repayment charge on the day you make the early repayment.