Types of home loans nz


There are many types of home loans available for people to choose from in New Zealand. Find out the difference and see what type of home loan is going to be the best type of home loans for you and your family. Some of the loan types include:

  • Orbit loan

  • Table loan

  • Reducing loan (Flat loan)

  • Revolving loan


Orbit loan is a type of financing option which combines all your cheques, saving loans and home loans in one package. It can lower your debt as all the income can be directed into one account and the payments can be made at any time convenient to you.


A table loan is a type of loan whereby the loan is repaid with regular repayments of a same amount. The loan can be repaid either on a monthly or fortnightly basis. With a table loan the borrower can change the type of loan when the situation changes. Table loan is the most popular type of home loan as it gives more consistency to the repayments you do.


A reducing loan is another type of home loan finance. This type of loan is suitable for people who can make higher loan payments. With the higher amounts of loan paid the payments will lower as the time goes on. The interest is also lowered as higher amount of the payments are made on time.


In a revolving loan the loan you borrow and your everyday banking are combined in one account. There are no set repayment options. This allows more flexibility to you to make your repayments.

What you need to qualify to get home loans in New Zealand?

Before you apply or meet with a home loan company you should prepare a few things in advance. Some of the following are listed below:

  • Confirmation of your income (letter from the employer stating the salary you earn)

  • Bank statements for the past three months and explanations for any big deposits and the sources of those funds.

  • Evidence of your deposit

  • A guarantor(acts as a security) if applying for the home loan for the first time

  • Property valuation

  • Explanations for any of the bad credit report on your credit history.