This information is for you if you’ve received a letter(s) titled ‘We’re removing interest rate types from your home loan(s)’. Please note, you’ll get one letter for any home loan(s) that you hold individually and/or jointly where changes are required to that home loan. You’ll also receive a separate letter for any loans held by each entity type, e.g. sole trader, partnership, company, or trust. Here’s some more information about these changes.
Will my interest rate change because of the removal of these base interest rate types?
No. Removing Residential Investor (RIN) and Residential Owner-Occupied (ROO) will not increase your interest rates in any way.
Will the removal of base interest rate types affect the ability to offset my mortgage with my TotalMoney home loan?
No. Removing RIN and ROO won’t affect your ability to offset your mortgage if you have a TotalMoney home loan.
What is the base interest rate?
Previously we had two base interest rate types (Residential Investor (RIN) and Residential Owner-Occupied (ROO)) depending on how a loan was secured. RIN and ROO rates have largely been the same for some time now, which is why they’re being removed. They have not been included in new loan agreements since 5 September 2024.
There is now only one base interest rate for each type of BNZ home loan:
- For Standard home loans, this is the base interest rate for Standard Housing Loans, which may be variable or fixed.
- For Rapid Repay home loans, the base interest rate is the variable interest rate for Rapid Repay Housing Loans.
- For Mortgage One home loans, the base interest rate is the variable interest rate for Mortgage One Housing Loans.
- For TotalMoney home loans, the base interest rate is the variable interest rate for TotalMoney home loans.
How will I know what the base interest rate type is for each of my home loans?
You can find the base interest rate for each of your home loan types in the ‘Changes to the letter(s) of advice’ documents included with your letter.
Will you still collect residential property occupancy information (i.e. whether a property is owner-occupied or investment)?
Yes, this is a regulatory requirement.
Will minimum equity requirements still apply to loans secured by a residential owner occupied, or residential investment property?
Yes, minimum equity requirements may apply.
Typically, lending secured against an owner-occupied property will need a 20% deposit, while lending secured against residential investment properties currently requires a 30% deposit. A low equity interest rate premium may apply for deposits less than 20%.
See more information about deposits and loan to value ratios