Structuring your home loan
By the time we're structuring the loan, the hard bit is behind you. But the choices here quietly shape what your mortgage feels like for the next 30 years.
Fixed vs floating
Fixed gives you a known repayment for a set term (6 months to 5 years). Floating changes with the OCR and lets you make lump-sum repayments without a break fee. Most first-home buyers do 100% fixed for cashflow certainty; some split so a small portion stays floating for flexibility.
Splits and terms
You don't have to fix the whole loan on the same term. A common structure is splitting into two or three chunks on different terms (say 1-year, 2-year and 3-year) — this spreads the risk so the whole loan is not on the same rates when it comes time to re-fix. I'll walk through what makes sense for you rather than default to a formula.
Offset and revolving credit
An offset account uses your everyday cash to reduce the interest calculated on your loan. Great if you keep a decent balance in the bank. Revolving credit works similarly and gives you flexible drawdown. Both suit certain people and are wrong for others — I'll be honest which camp you're in.
From unconditional to settlement
Once you're unconditional, the bank issues loan documents, your solicitor coordinates with theirs, KiwiSaver funds get released, and on settlement day the money moves and the keys are yours. It's usually 3–6 weeks between unconditional and settlement — enough time to sort insurance, utilities and moving without rushing.
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