Home Loan Calculator

Q: How do I pay off my mortgage faster?

There is no single 'good' yield, as it depends entirely on the region and the property type. Generally, in major centers like Auckland or Wellington, a gross yield of 3.5% to 4.5% is common, with investors relying more on capital growth. In regional New Zealand, investors typically target higher gross yields of 5% to 7% to ensure the property is cash-flow positive.

Q: What is the difference between Revolving Credit and an Offset Mortgage?

Gross rental yield is calculated using the formula: Annual Rent ÷ Purchase Price x 100. This gives you a percentage that represents the total annual rent as a proportion of the purchase price.

Q: Who is this calculator built for?

Both new builds and existing properties have different yield characteristics. New builds often have lower gross yields but may offer better depreciation benefits and lower maintenance costs. Existing properties in regional areas typically offer higher gross yields. Compare the full pros and cons in the New Build vs. Existing Property Investment guide.

Q: Are local council rates and house insurance included in my mortgage?

No, rental yield calculations exclude mortgage interest. Yield is calculated based on the purchase price and rental income, not your financing costs. Mortgage interest is a separate consideration when calculating your actual cash flow and return on investment.

Q: The calculator says I can afford the repayments—what is my next step?

Running the yield on a property is the first step. The second step is proving to the bank that the rent, combined with your personal income, is enough to secure the mortgage. At Home Loan Factory, we specialize in structuring investment finance and can run your figures through the exact servicing test the banks use to tell you instantly if you will be approved for the purchase.

Figure out your NZ mortgage repayments in seconds. Test split loans, revolving credit, and offset accounts to build a structure that saves you money.

Disclaimer: Information provided by this calculator is an estimate only and is not an offer of finance. Actual rates, fees, and repayment amounts may vary and depend on your specific situation, chosen lender, and market conditions. Calculations assume interest is charged at the specified frequency and do not account for daily compounding variations, leap years, or lender-specific fee structures. Please speak to your Home Loan Factory adviser for a personalized quote.

Purchase Price

Deposit

20% Deposit

Total Loan Term

YEARS

MONTHS

Interest Rate (%)

Fixed Period (Optional)

Repayment Frequency

Loan Structure

Offset / Revolving Buffer

Enter the average daily balance kept in your linked accounts. The calculator will automatically apply this cash to reduce the interest charged on your eligible splits above.

Total Loan Balance: $0

Dashboard Display Freq.

Rates & Insurance Estimate Tool

Rates

Insurance

/ week

Repayment

Includes Rates & Ins.

Phase 1: Interest Only

Includes Rates & Ins.

For 2 Years

Phase 2: Principal & Interest

Includes Rates & Ins.

Remaining Term

Save 0 Years

Pay It Off Faster

Target repayment / week

Note on Revolving Credits: A standard Revolving Credit only requires interest to be paid, meaning the principal balance will not naturally decrease over time unless you make extra payments. A 'Reducing' facility automatically drops its limit by a fixed principal amount each month to ensure the debt is cleared.

Ready to apply?

Repayment

Apply ❯

1. The Simple Setup

Choose your goal: Select either "Buying a Property" or "Already Own My Home".
Enter the basics: Drop in your purchase price and deposit (or total loan balance), your term, and current interest rate. (Not sure what rate to use? Check our Compare NZ Mortgage Rates tool for live bank specials).
See your costs: The calculator will instantly show your required repayments. Use the "Rates & Insurance Tool" to get a true picture of your actual weekly household costs.
Pay it off faster: Slide the "Increased Repayment" tracker to instantly see how much interest you can save, and exactly how many years you can slash off your loan term by paying a little extra.

2. The Advanced Setup

Are you mixing fixed rates with floating? Using an offset account? Click the Advanced (Split Loans) button to unlock professional-grade structuring:

Add your splits: Click "+ Add Loan Split" to break your total loan into multiple chunks (e.g., $400k Fixed, $100k Revolving Credit).
Customise everything: Assign specific interest rates, repayment types (P&I, Interest-Only, Revolving Credit, or Offset), mixed repayment frequencies, and varying loan terms to each individual split.
Get the final picture: Once your splits match your total loan amount, the calculator will blend them into a single, easy-to-read "Combined Repayment."

Pro Tips: Save, Export, and Share

Copy Loan Chart: Built your perfect structure? Click "Copy Loan Chart" to copy a beautifully formatted table of your exact loan splits to your clipboard. Paste it straight into an email or your own notes.
Share Link: Click "Share Link" to generate a custom URL of your exact setup. Send it to a partner or your Home Loan Factory adviser so everyone is looking at the same plan.

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FAQS

Frequently Asked Questions (Home Loan Structuring)

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How do I pay off my mortgage faster?

One of the most effective ways to pay off a mortgage faster is by making extra principal payments above your bank's minimum requirement. Even an extra $50 a week can shave years off your loan. If you have a 'split loan', you can use the Avalanche Method: direct all your extra cash toward the loan split with the highest interest rate first, while paying the minimums on the rest. Our calculator models this automatically.

What is the difference between Revolving Credit and an Offset Mortgage?

Both are designed to reduce the interest you pay, but operate differently:

Revolving Credit: Acts like a large overdraft on your everyday transaction account. Your income reduces the daily loan balance and interest, and you can redraw funds up to your limit.
Offset Mortgage: Keeps your loan and savings accounts separate, but offsets the total balance of your qualifying savings against your loan before calculating interest.

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Who is this calculator built for?

For First-Home Buyers: If you just want a quick, plain-English estimate of what your weekly repayments will be, keep the calculator in "Simple" mode. It is faster and more intuitive than standard bank calculators, giving you an immediate breakdown of your costs (including rates and insurance).

For Visual Learners: See exactly where your money goes. Rather than just spitting out a wall of numbers, every scenario instantly generates interactive visual graphs. You can clearly map out your exact loan trajectory and see the visual impact of how much time and interest you save by making extra repayments.

For Investors & Next-Steppers: Toggle to "Advanced" mode to unlock the features the banks hide. Real-world mortgages are rarely just one big loan. Our advanced simulator lets you model multi-tranche split loans and map out Interest-Only to P&I transitions. Crucially, it calculates your exact repayments for Offset accounts, standard Revolving Credits, and Reducing Limit facilities based on the actual cash balance you hold in them—a highly advanced feature most other calculators completely ignore. You can even instantly export your visual charts and amortisation tables to share with your partner or adviser.

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Are local council rates and house insurance included in my mortgage?

No, your bank repayment only covers your loan principal and interest. However, council rates and house insurance are mandatory ongoing costs of property ownership in New Zealand. Our calculator includes a Rates & Insurance Estimate Tool so you can see the "True Cost" of your housing commitment, preventing you from over-stretching your household budget.

The calculator says I can afford the repayments—what is my next step?

This calculator provides a great realistic estimate, but bank credit policies and test rates vary between lenders. The next step is to speak with a Home Loan Factory adviser to complete a full servicing check, assess your deposit, and secure a formal bank pre-approval.

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