Home Loans
Interest Only
A great option of reducing repayments in the short term.
Wayne and Aydee Green | Father and Daughter from the Wholemeal Cafe in Tākaka | NBS personal and business banking clients
A great option for reducing repayments in the short term, assisting in managing your budget and giving you time before full principal and interest repayments need to be made.
How an Interest Only Loan Works
- You can set your home loan to be interest only for up to five years.
- You can choose fixed or variable interest rates.
- Repayments are made monthly.
- Your minimum repayments will only cover the interest charges on your loan.
- There is still some flexibility to repay loan principal.
Rates & Fees
| NBS Home Loan Rates | |
|---|---|
| 6 Months Fixed | 5.24% p.a. |
| 1 Year Fixed | 4.89% p.a. |
| 2 Year Fixed | 4.87% p.a. |
| Variable* | 6.79% p.a. |
| NBS Flexi Loan variable interest rate | 7.04% p.a. |
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Interest rates are current as of 26 August 2025 and subject to change at any time without notice. NBS lending criteria and specific terms and conditions apply. Margins, discounts and fees may apply. For new loans or refixes, rate may be subject to change prior to drawdown. NBS home loan rates are available for residential owner-occupied or investment property loans only. * Effective rate for new clients 26 August 2025. Effective rate for existing clients from 13 October 2025.
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| NBS Residential Term, Residential Redraw, NBS Interest Only | |
|---|---|
| Loan Establishment Fee | From $450.00 |
| Loan Additional Funds | $250.00 |
| Interest Rate Review | $50.00 |
| Discharge Mortgage Fee | $50.00 |
| Default Interest Rate | 4.00% p.a. above annual interest rate |
| Default Administration Fee | $45.00 per event |
| Insurance Arrears Payment Fee | $25.00 |
| Rates Arrears Payment Fee | $25.00 |
| Motor Vehicle Security Variation/Security Swap Fee | $30.00 |
| Duplicate Statement Fee | $5.00 |
| Early Repayment Recovery Amount (ERRA) | P.O.A |
| Early Repayment Administration Cost | $45.00 |
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Fees are subject to change.
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Terms and Conditions
NBS’ current Loan Agreement Specific Terms and General Lending Terms are available free of charge from any NBS branch. NBS lending criteria and the above terms apply.