Loan types
Helping you choose the right sort of loan.
It pays to understand the different types of loans, so you can choose one that suits your needs. You could find that a combination of loans is best. Home loans have a lower interest rate but they can take a long time to pay back. Credit cards are a convenient way to buy things, but they can be expensive if you don’t repay all of the outstanding balance by the payment date. Personal loans can help you pay for something you need straight away, however you can end up paying a lot of interest by the time you pay back the loan. Check the pages below and when you’re ready to find out more, talk to your bank about which loans would be best for you.
Home loans
Each type of home loan has features that will affect how quickly the loan is paid off and how much it will cost you. Check pages that explain each of the main types and give you clear arguments for and against each one.
Personal loans
Find out about getting a personal loan, when they can be best option, and why a secured loan normally means you’ll pay less interest.
Hire purchase
Hire purchase or store credit can sometimes be a good option. It can also be very expensive, even when it’s an interest-free deal. By knowing what to look for you can avoid HP deals that end up costing more than you realised.
Credit cards
Find out how a credit card can let you borrow to pay for things. Learn about paying off your card, interest rates, the annual fee and getting a cash advance. Discover how to keep your credit card purchases interest free.
Overdrafts
An overdraft is like having small loan ready to go whenever you need it. Having an agreed overdraft limit can also help you avoid honour and dishonour fees if you bank charges them when you spend more than you have in your account.
Student loans
Read an introduction to student loans for tertiary study in New Zealand. Find out how much you can borrow, how you repay the loan and when you start paying interest if you go overseas. Follow a link to detailed information.
