These days there are more home loan options than ever.  You may be able to tailor your home loan structure to suit your particular situation.

Types of loans

There are three basic types of loan you can choose from.  Each has different benefits.

• Fixed Interest Rate Loans offer certainty, as you know exactly what your interest rate – and your repayments – will be for a set period.  
• Floating Interest Rate Loans give you the flexibility to repay lump sums off your loan at any time, for no cost.  The interest rate – and your repayments – can go up or down in line with the market. 
• Flexible Home Loans are the ultimate in flexibility.  You can re-borrow up to your loan limit or repay lump sums at any time if you need to, and if you use them wisely you can also save on interest costs.  

For an ‘at a glance’ comparison of each different type of loan, click here.

Mixing and matching

You can take out a combination of loans that suit your situation best – for example put a portion on fixed for certainty and a portion on floating if you are likely to receive a lump sum (e.g. a bonus) in future that you want to use to reduce your mortgage.  The National Bank’s home lending specialists may be able to help you review your options and decide which approach is best for you.  For more information, check out our sections on combining different types of home loans and loan strategies for investors.

Repayment options

As well as a choice of home loans, you have a choice of repayment options:

• Table – your repayments stay the same each time
• Straight line – the amount of principal you repay stays the same each time, but the amount of interest you pay decreases each time
• Interest only – you only repay the interest, no principal.

For more information on each of these repayment options and how they work, click here. 

This material is for information purposes only. You should seek professional advice related to your individual circumstances. While The National Bank has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, The National Bank does not accept any responsibility or liability arising from your use of this information. Our lending criteria, terms, conditions and fees apply.