Westpac HomeOwnership.Move into a place of your own.

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Choosing the loan options that suit you 4

About split home loans 6

How do I make repayments? 8

Top tips for paying off your home loan faster 10

Ready to get started? 11

Contents.

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Choosing the loan options that suit you.

At Westpac we have a range of flexible home loan options to suit your life. Choose to put the loan on just one type, or mix and match to enjoy the benefits of both fixed and floating rates.

Name of Westpac home loan What it is: It might be for you if:

FloatingRate

Choices Everyday

Your home loan and daily transactions are combined in one account.When your income is paid in, it immediately reduces your home loan balance so you could pay less interest.

– you’re happy to have your home loan and transactions in one account – you want the flexibility to pay lump sums off your home loan

without additional costs – you’re comfortable with a floating rate knowing that

interest rates could change – you want to reduce the amount of interest you pay

Choices Floating

A simple home loan with an interest rate that increases and decreases in line with the market. You can choose to change all or some of your floating rate loan to a fixed rate at any time.

– you want the flexibility to pay lump sums off your home loan – you’re comfortable with a floating rate knowing that interest

rates could change – you want to increase your regular repayments at any time without penalty

Choices Offset

Your eligible Westpac transaction and savings account balances offset your home loan so you only pay interest on the difference. In some circumstances, you can also offset accounts held by your immediate family, maximising your offset benefits.

– you want to focus on saving as well as paying off your home loan – and keep your savings separate

– you want to reduce the amount of interest you pay – you want to reduce the length of your loan – you’re comfortable with a floating rate knowing that interest

rates could change

Fixed Rate Choices Fixed

You ‘fix’ your interest rate at a certain amount and it will stay the same for the fixed rate term, even if interest rates in the market change. When the fixed rate expires, you can choose another fixed rate term or go on a floating rate.

– you want the certainty that your repayments aren't going to change during the fixed rate term

– you don't think you'll want to make lump sum payments off your loan during the fixed rate term

– you want to increase regular repayments up to 20% of initial repayment at any time during the fixed term without penalty

Name of Westpac home loan What it is: It might be for you if:

FloatingRate

Choices Everyday

Your home loan and daily transactions are combined in one account.When your income is paid in, it immediately reduces your home loan balance so you could pay less interest.

– you’re happy to have your home loan and transactions in one account – you want the flexibility to pay lump sums off your home loan

without additional costs – you’re comfortable with a floating rate knowing that

interest rates could change – you want to reduce the amount of interest you pay

Choices Floating

A simple home loan with an interest rate that increases and decreases in line with the market. You can choose to change all or some of your floating rate loan to a fixed rate at any time.

– you want the flexibility to pay lump sums off your home loan – you’re comfortable with a floating rate knowing that interest

rates could change – you want to increase your regular repayments at any time without penalty

Choices Offset

Your eligible Westpac transaction and savings account balances offset your home loan so you only pay interest on the difference. In some circumstances, you can also offset accounts held by your immediate family, maximising your offset benefits.

– you want to focus on saving as well as paying off your home loan – and keep your savings separate

– you want to reduce the amount of interest you pay – you want to reduce the length of your loan – you’re comfortable with a floating rate knowing that interest

rates could change

Fixed Rate Choices Fixed

You ‘fix’ your interest rate at a certain amount and it will stay the same for the fixed rate term, even if interest rates in the market change. When the fixed rate expires, you can choose another fixed rate term or go on a floating rate.

– you want the certainty that your repayments aren't going to change during the fixed rate term

– you don't think you'll want to make lump sum payments off your loan during the fixed rate term

– you might want to increase regular repayments up to 20% of initial repayment at any time during the fixed term without penalty

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About split home loans.

You have the choice to split your Westpac home loan and combine different interest rate types. You could have two different fixed rate terms, or a mix of floating or fixed.

Some of the benefits of splitting your home loan.

It’s smart, because:

– it’s flexible – you can pay the floating portion off as fast as you like without additional cost

– it could save you even more on interest (with our Choices Everyday Loan – ask us how)

It could also bring you peace of mind, because:

– the greater the fixed rate portion is, the more certainty you will have knowing what your monthly repayments will be

– you can choose a fixed rate term that’s right for you, or even select a combination of fixed rate terms on the one loan

– the floating portion provides you the flexibility to redraw on your loan, whenever you need to

– the floating portion can be changed into a fixed rate term at any stage

How can you split your loan? Try it yourself.

If you’d like to get more hands-on, go to westpac.co.nz/calculators to work out your own home loan scenario online with our handy split home loan calculator.

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How do I make repayments?

Westpac home loans are designed to be flexible, even down to the way you repay your loan. Generally our home loans are designed so that you pay off some of the loan and interest with each repayment. That way your loan is paid off within the agreed term.

Repayment options.

Different loan types offer different benefits and repayment options. Let’s take a look.

Table loan.

With a Table loan your regular payments are the same each time (unless interest rates change). At first most of the money goes towards the interest you owe, but as your loan starts to go down more of each payment goes towards the principal.

This is the most popular type of home loan because it gives more consistency to your repayments.

Regular payment amount

Interest

Principal

Reducing (Flat) loan.

With a Reducing Flat loan you pay a set amount off the loan regularly plus the interest you owe. So your repayments are a lot higher at the start than later on but this can save you interest because you pay more off the principal earlier on.

Principal

Regular payment amountInterest

Revolving Credit loan.

With a Revolving Credit loan your loan and everyday banking are combined in one account. There are no set repayments but you’ll need to make sure your balance stays below the limit at all times.

Loan balance

Loan limit

Interest Only loan.

An Interest Only loan is where you pay only the interest owing each fortnight or month, but nothing off the principal. These are usually short-term loans (a maximum of 5 years) to help keep payments low while you’re building or renovating, or if you need bridging finance while you try to sell another home.

At the end of this period you will need to choose a different repayment option.

Regular payment amount

Interest

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Top Tips for paying off your home loan faster.

– Increase the amount you repay: it sounds obvious, but the more you repay, the less interest you’ll pay on your home loan in the long run

– If you are on a fixed term, you can increase your repayments by up to 20% of the initial repayment amount without penalty

– Pay half your monthly loan repayment each fortnight: this works out that you make two extra payments per year (compared to when you pay monthly), reducing the overall interest costs you’ll pay over the repayment period of your loan

– Shorten the term of your loan: this means your repayments will increase and you’ll pay off your loan faster, with less overall interest payments

– Pay lump sums off your loan*: if you’ve saved up or received a lump sum, using this to reduce the outstanding balance on your home loan could reduce the time it takes to pay off the loan*Remember - ‘break costs’ may apply if you have a fixed rate loan and you pay back part or all of it during the fixed rate term.

– Keep your monthly payments the same when the interest rate drops: this means more of each payment will go towards repaying principal (as opposed to interest)

– Think about a revolving credit account: with a revolving credit facility, when you pay your salary into your home loan account your loan balance goes down – meaning you pay less interest

Ready to get started?There are a few ways you can apply for your home loan:

– Online: If you are already a Westpac customer you can apply online using Westpac One. If you’re thinking of joining go to westpac.co.nz to apply for an online conditional approval. Your home loan application could be conditionally approved in just 60 seconds of submission

– Talk to one of our Mobile Mortgage Managers – go to Westpac.co.nz/homeloan to find one near you

– In-branch: Pop into your nearest Westpac branch to set up a meeting

– Call us: Call 0800 177 277 to talk to a home loan specialist

Early repayment break costs on your fixed rate loan.If you've come into some money and want to pay off your fixed rate loan, or you break the fixed term to get a lower interest rate, we charge a break cost. This cost is based on a complex formula, but in simple terms it calculates whether we've incurred a loss as a result of the prepayment or switch.

If you'd like to know what your break cost might be, just contact us and we can give you a quote. Go to westpac.co.nz to learn more.

12Westpac New Zealand Limited.

This information is current at 1 August 2019 and may vary from time to time. The  information in this brochure is intended as a guide only and doesn’t take into account your personal financial situation or goals. Westpac’s current home loan lending criteria and terms and conditions apply. An establishment charge and/or a Low Equity Margin may apply. An additional fee or higher interest rate may apply to loans if the application is accepted but doesn’t meet the standard lending criteria. You can get a copy of the current disclosure statement for Westpac New Zealand Limited from any Westpac branch in New Zealand free of charge.

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0800 177 277

Westpac Home Loans

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For more information.