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Floating interest rate home loan

A floating rate loan is also known as a variable rate loan. With this loan your interest rate can go up and down in line with market conditions. You also have the flexibility to repay your loan at any time without cost.

Benefits at a glance

  • Flexibility to make extra payments without cost
  • Drawdown funds as a lump sum or instalments
  • Switch to a fixed interest rate at any time
  • Interest only and payment holiday options available

Is it right for me?

A floating (Housing variable) interest rate loan may suit you if you want the discipline of making regular payments but also the flexibility to increase these and make extra payments at any time.

With this loan, there is no early repayment adjustment if you want to make extra payments. So it’s an option to consider if you want to repay all or part of your loan early.

Keep in mind your interest rate, and therefore your payments, may go up and down in line with market conditions. So if you’re looking for payment certainty, you might like to consider either a fixed interest rate home loan or have a combination of both fixed and floating.

About this loan

Flexibility to repay early

With this loan, if you increase your regular payments or make extra payments to repay your loan early, you won’t incur early repayment adjustments.

Repayments that reflect the market

A floating interest rate may go up and down in line with market conditions, meaning your payment amount will do the same.  So when interest rates are low, you could benefit.

Choose how you repay the interest and principal

There are different repayment options to choose from. This includes a table loan, a reducing loan or interest-only.

Lock in an interest rate anytime

If you want to switch to a fixed interest rate at any stage, you can. Having payment certainty might help you manage your finances. Talk to one of our lending specialists if you think this might be right for you.

Choose a lump sum or instalments

You can drawdown your funds in one lump sum or as instalments over a 12 month period.  Drawing down in instalments could be helpful if the loan is for a building project and you don’t need all the funds at once. You’ll only be charged interest on the funds you use which can help you save on interest costs.

Choose a single loan or a split loan structure

You have the option of a single loan on a floating interest rate or you can choose to split the amount you borrow across a combination of different interest rates.

A split loan can give you both the convenience of payment certainty and flexibility.

Home loan interest rates & specials

Fixed 12 month special rate

Min 20% equity required. Ts&Cs apply.

Fixed 18 month special rate

Min 20% equity required. Ts&Cs apply.

Fixed 24 month special rate

Min 20% equity required. Ts&Cs apply.

Fixed 36 month special rate

Min 20% equity required. Ts&Cs apply.

Fixed 48 month special rate

Min 20% equity required. Ts&Cs apply.

Fixed 60 month special rate

Min 20% equity required. Ts&Cs apply.

24-month fixed rate

6-month fixed rate

12-month fixed rate

18-month fixed rate

36-month fixed rate

48-month fixed rate

60-month fixed rate

Housing variable rate

ASB's lending criteria, terms and fees apply. Interest rates are subject to change. A loan processing fee of $400 may apply.

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Other options to consider

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ASB’s lending criteria, terms and fees apply.

Home loans Floating interest rate home loan