Choosing the right home loan

Choosing the right home loan

For some suggestions on which home loan might be right for you, please select statements that represent your current situation.

I have a fixed income and need a home loan that would be easy to budget for

Consider a table loan with a fixed interest rate.

  • Your monthly or fortnightly payments are kept at the same amount and spread evenly over the whole term of your loan.
  • Your interest rate will remain the same for the fixed rate period you select.

My income varies. Sometimes I have extra money that I can use to pay off my home loan.

Consider either of these solutions:

  • Orbit or Orbit Fast Track. 100% of your home loan on a floating rate with no set repayments.
  • Split facility. Have a proportion of our loan on a variable rate so you can make as many extra payments as you like without any penalties and have the remaining on a fixed interest rate so that you have some protection against rising interest rates.

I don't want to worry about changes in interest rates and payments.

Consider a fixed rate loan.

  • The interest rate is guaranteed not to change for the fixed rate period you choose.  So your payments wont change during that period either.
  • There are numerous fixed interest rate periods available; from 6 months to 5 years.


I want to pay as little interest as possible.

Consider a variable loan.

  • Placing all or most of your home loan on a floating gives you the flexibility to make extra payments; whenever you like, without any penalties.
  • Our managing your home loan page has tips on how to save on interest and pay off your loan faster.


I want to pay off my loan as quickly as possible and can afford higher repayments at the start of my loan.

Consider a reducing loan.

  • This type of loan begins with higher payments that gradually reduce over the term of the loan.
  • With each monthly or fortnightly payment you pay back a set amount of your loan plus the interest thats due each time.
  • This can save you interest because you pay back more of the loan earlier on.


I need a short term loan as I am buying a new home before selling my existing property.

Consider an interest only loan.

  • Every fortnight or month you only pay the interest owing.
  • You repay the loan in full at the end of a pre-agreed term, which can be up to 5 years.

Terms and conditions: ASB's home loan criteria and a fee of $400 may apply. Early repayment adjustments may also apply. A low equity premium may apply. You will also need to have an ASB account.  Loans for business purposes are excluded.