For many New Zealanders, a home loan is the largest financial commitment they’ll ever take on. It’s also one of the easiest to set and forget, even as life goes on and priorities change.
A promotion, a new baby, rising expenses or long-delayed renovation plans can all change what financial comfort looks like. Yet home loan structures often remain untouched for years, even when they no longer suit a borrower’s circumstances.
That’s why the team at Nelson Building Society, known as NBS, encourages homeowners to ask a simple but important question: Is your home loan working as hard for you as it could be?
“Lending isn’t one-size-fits-all,” says Linda Sullivan, NBS General Manager Retail Banking and Client Experience. “Having the ability to adjust your loan structure to your unique circumstances often delivers more long-term value than simply chasing the lowest rate."
“Even small structural changes to a home loan can make a meaningful difference over time, particularly when borrowers have strong banking support through different life stages.
"Our lenders are locals – and that insight really matters too. They understand the communities we serve and can provide personalised solutions that genuinely fit people’s needs. It’s about more than lending – it’s about helping make goals achievable.”
Ammie McHardy, Motueka Branch Manager at NBS, says reviewing or moving a home loan is often much simpler than people expect.
“Many borrowers aren’t fully aware of the options available, which products might suit them best, or how their needs could change overtime.” she says. “A lack of confidence, combined with practical barriers like not knowing who to contact, can make even a straightforward review feel daunting. As a result, people often stay in the same structure for years without realising improvements could be made.”
Why flexibility matters
Interest rates tend to dominate home loan conversations, but McHardy says loan structure and flexibility can be just as important over the long term.
“A very common assumption is that a loan term is fixed – that if you take out a 30-year loan, you’ll be paying it off for 30 years,” she says.
“In reality, NBS borrowers often have options to reduce that time frame by increasing their repayments. For example, the NBS Residential Redraw Home Loan allows clients to make extra repayments, saving interest and paying down the loan faster. Even small additional amounts can have a significant impact over time but it’s important to speak with one of our lenders first, as conditions and limits can apply.”
"Some borrowers also worry they’ll be penalised for getting ahead by making extra repayments. While restrictions can apply depending on the product, McHardy says this is another reason why conversations with a lender are valuable.
“These misunderstandings can lead people to assume their only option is to split lending or keep part of their loan floating at a higher rate. Understanding the flexibility built into different products can open other pathways.”
Planning for the future
A home loan review is not just about today’s rate – it is also an opportunity to think ahead.
McHardy says future plans should form part of every lending conversation, because they shape what ‘good’ looks like for each borrower. That includes people planning to grow their family, change jobs, renovate or simply create more breathing room in their budget.
“Our redraw loan is designed for borrowers who want to keep moving forward,” she says. “It allows clients to lock in a fixed interest rate while making additional or lump-sum repayments.”
Those extra repayments reduce interest and can help shorten the loan term, but another key benefit is access.
“Clients can redraw those funds later if needed, whether for renovations, a vehicle or other major expenses. Many choose to keep surplus funds in their loan rather than a savings account, reducing interest payments while retaining access.”
McHardy says the Residential Redraw Home Loan can suit a wide range of borrowers, including those with variable income, and encourages people to seek professional advice before choosing any product.
Why face-to-face conversations still matter
With online calculators and comparison tools readily available, it’s easy to assume the strongest option is the one that looks best on a screen. But McHardy says lending decisions are deeply personal.
“A lot comes back to having a genuine conversation and really understanding our clients,” she says. “While some people are comfortable managing everything online, many prefer knowing exactly who they’re dealing with. At NBS, clients have a direct line to their personal banker, which can make a real difference, particularly if questions or challenges arise.”
For borrowers who have not reviewed their home loan in years, a short conversation now could help ensure their lending still fits both the life they are living and the one they are planning.
Start your home loan conversation at your local NBS branch or visit nbs.co.nz/home-loan-rate for more information.
The information in this article is general in nature and not personalised financial advice. For personalised financial advice, please speak to a qualified advisor.
NBS’ home loan products are subject to lending criteria, fees, terms and conditions. As a building society, NBS is not a registered bank but a licensed non-bank deposit taker.
