If you can afford to make higher initial loan payments, a reducing loan may be the best option for you.

How a reducing loan works You pay back the money you borrowed, called the principal, in equal amounts. The total amount of principal you owe reduces with each loan payment and so does the amount of interest you have to pay each time. This means your regular payments will steadily decrease.

For illustrative purposes only.

Set up options

• Choose fortnightly or monthly payments. With fortnightly you’ll pay less interest overall, but monthly may be more convenient.
• Decide how quickly you want to repay the loan; the maximum term is 30 years. A longer term means smaller payments but you’ll pay more interest overall.
• You may want to fix your principal payments at a higher level than normally required. This will reduce both the term and the interest payable on the loan.

Interest rate options

• Fixed rate – stays the same for the period you select. However, if you want to repay some or all of the loan while it is still on a fixed rate, you may have to pay an early repayment adjustment.
• Variable rate – can increase or decrease over time with the market. Lets you repay some or all of the loan at any time without fees.

Use our handy calculators to compare different loan types and find the one that's right for you.

There are also various ways to manage your home loan once it’s underway.

Home loan rates

View the latest interest rates

Home loan fees

Loan processing fee
When a home loan is first arranged, a loan processing fee of $400 applies. For a split facility you pay only one loan processing fee. A low equity fee may also apply.

Alteration to borrowers or security held for a loan:

Discharging your loan:

Changing loan types
If you change your loan type or move to a new fixed interest rate you will incur a switch fee of $250.00.

Unpaid local body rates
If ASB has to collect unpaid rates on behalf of a local council these fees will be applicable:

• Local body rates demand notice œ $50.00.
• Plus additional charge if ASB has to make a rates payment œ $60.00.

Loan default
If you default on your loan and the deduction account is overdrawn or in excess of any agreed limit, or the balance owing under your loan account exceeds the loan amount or the reducing limit, interest will be calculated daily on the overdrawn amount at the Unarranged Overdraft Interest Rate, until it is paid in full.  Please note this interest rate is subject to change at any time.