Loan Comparison Calculator
Compare 2 to 4 NZ home loans side by side: monthly repayments, total cost, total interest, and annual fees. Find which loan saves you the most over the full term — not just the lowest advertised rate.
Best Choice
Bank B
Save $4,500,000 over the loan term vs Bank A
| Loan | Monthly Repayment | Total Interest | Total Fees | Total Cost |
|---|---|---|---|---|
| Bank A | $270,833 | $97,000,000 | $0 | $97,500,000 |
| Bank BBest value | $258,333 | $92,500,000 | $0 | $93,000,000 |
How to Compare NZ Home Loans
When you are shopping for a home loan in New Zealand, the advertised interest rate is only part of the story. Banks and lenders structure their offers differently — some have low rates but charge annual fees, others offer cash-back incentives that offset a slightly higher rate, and some require a minimum equity or salary-credit condition.
The number that matters most is the total cost over the loan term. A 0.15% rate difference on a $500,000 mortgage can add up to $17,000 or more over 30 years. Annual fees of $200-300 per year add another $6,000-$9,000. These differences are invisible if you only compare the monthly repayment — but they are obvious in our comparison table.
Use the calculator to enter each loan offer you have received (or that you have seen advertised) and compare them side by side. Add up to four loans. The best choice card highlights the winning loan and exactly how much you save vs the most expensive option.
Frequently asked questions
How do I compare two or more home loans in New Zealand?
Enter the loan amount, then add each loan offer with its interest rate, loan term, and any annual fees. The comparison table shows monthly repayment, total interest, total fees, and total cost. The loan with the lowest total cost is the best value — even if its monthly repayment is slightly higher. You can compare up to four loans side by side.
What is the total cost of a home loan?
Total cost = loan principal + total interest + total fees. For a $500,000 loan at 6.50% over 30 years, interest alone costs about $636,000. Annual fees of $200/year add another $6,000. Total cost captures everything in one number — it is the truest basis for comparing loans.
What is the difference between the interest rate and the comparison rate?
The interest rate is the annual percentage charged on your balance. The comparison rate (or effective annual rate) includes the interest rate plus most fees — establishment, annual, and service fees — expressed as a single percentage. Under the CCCFA, NZ lenders must disclose the comparison rate. Our total cost column shows this in dollar terms directly.
Fixed vs floating rate — how do I compare them?
For a fixed-rate loan, enter the fixed rate (e.g. 6.50% for 2 years). For a floating-rate loan, enter the current floating rate. Most NZ borrowers split their loan across terms — create separate entries for each portion. The total is the sum across all splits. Note that the calculator assumes the rate stays constant for the full loan term; in reality, fixed rates revert to floating after the fixed period.
How do annual fees affect the true cost?
Annual fees compound over 25-30 years. A $200/year fee on a 30-year loan adds $6,000 in total fees. A loan at 6.50% with no fees can cost less than a loan at 6.40% with $300/year fees over 30 years. Always use the total cost column — it folds in both interest and fees over the full term.
Sources
Loan calculations follow standard amortisation formulas. Fee disclosure requirements are based on the Credit Contracts and Consumer Finance Act 2003 (CCCFA) and Commerce Commission guidance on responsible lending. Interest rate benchmarks reflect prevailing NZ mortgage rates published by RBNZ residential mortgage lending statistics.
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Last updated May 2026. Calculations follow standard amortisation formulas. Fee structures based on CCCFA disclosure requirements.
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