No Debt, No Problem: Ways To Pay Off Your Mortgage Faster

Apr 15, 2021
By Staff writer


There’s nothing more rewarding than being able to pay your house on time, or paying off your mortgage earlier than expected. It’s not an impossible task, but it requires a lot of focus and planning to really get after this goal.

Whether it’s your first time buying a house or not, you can always use a few tips to pay off your home loan fast! 

But first, you need to know how much you have to pay, how much you’re willing to pay, and how long you’re going to pay your mortgage. 

There are major factors that can affect your decision in getting a mortgage, but for the most part, you will always need to consider your income.

Compare offers using a Mortgage Calculator

Make one-off lump sum payments

One effective way to complete your mortgage payment early is to pay off a lump sum, whether the money is from an inheritance or from your savings account. When you’re capable of paying in one go, take this opportunity to pay off a large chunk of your mortgage and lessen the burden. You can enquire to your lender about overpayments, and if allowed, ask them how much you can pay. Make it clear that you’re paying off a large sum in order to reduce the length of the term of your mortgage rather than the overall monthly payments. 

Overpay regularly

If you have the means to pay more then why not overpay regularly while you can. But before anything, you should first review the terms and conditions of your mortgage for any hidden fees or other charges for every overpayment. 

Reduce the mortgage term 

Paying off your mortgage for a shorter period will increase your monthly payments but will reduce the overall amount of interest you’ll repay. This means that you can shorten your 10-year plan to let’s say 5 to 8 years. 

Consider offset or flexible mortgage payments

Choosing the offset mortgage setup allows you to have flexibility on your monthly payments. You can either take a break from your monthly fees or overpay on your mortgage, depending on how much you’re willing to pay. You can also avoid extra penalties if you do decide to overpay. 


You have $50,000 on your nominated account and your mortgage is $400,000, the difference between the amount you have on your bank and the total loan amount is $350,000. You would only pay interest on $350,000. The more money you have in your account, the more you can save because interest is calculated daily. You can also link as many accounts as you want, may it be from a partner, siblings, or other family members, to lessen your interest. 

Home loan option for first-time home buyers

When you decide on a mortgage scheme, whether it’s a fixed rate mortgage or floating, you will still need to make upfront payments to your lender before you can start with your home loan. This can be overwhelming when financing a house in cities and Wellington where property costs are higher than anywhere else in the country. But regardless of the location, you’re still required to pay at least 20% deposit, which can go around  $120,000 for a mortgage of $600,000. But with a First Home Loan option, you will only have to pay a 5% deposit to start off with your mortgage, and ultimately get into your first home. 

Make the right choice. Use a Mortgage Calculator now!

What is a First Home Loan?

A First Home Loan is a financial product and solution underwritten by Kāinga Ora – Homes and Communities in partnership with several banks in New Zealand. With the many issues regarding housing and rental properties, it’s important that families, especially those living on average income, have ownership of their chosen homes. And one way to do this is requiring a minimum deposit that is both affordable and reasonable for most Kiwi residents. Rather than a 20% deposit, you will only be required a 5% deposit starting April 1, 2021. 

How do I qualify for a First Home Loan?

If it’s your very first time applying for a mortgage, you can consider applying for a First Home Loan provided that you meet the following criteria: 

  • NZ citizen or permanent resident
  • No properties owned 
  • Home is not an investment property
  • Household income for 12 months is below $85,000 (before tax) for a sole borrower; less than $130,000 combined if you’re borrowing with other people
  • The property you’re buying with First Home Loan is below the regional house price cap
  • If you’re a previous homeowner, your financial condition must be that of a first-time home buyer

House price caps

Region House price cap for existing or old properties House price cap for new properties 
Auckland, Queenstown Lakes District $600,000 $650,000
Hamilton City, Tauranga City, Western Bay of Plenty District, Kāpiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Tasman District, Nelson City, Waimakariri District, Christchurch City, Selwyn District $500,000 $550,000
Rest of New Zealand $400,000 $550,000

Participating Banks 

In addition to the standards set forth by Kainga Ora, you as a borrower, also need to qualify with the bank agent who goes through your application. 

  • Westpac
  • TSB
  • KiwiBank
  • Co-Operative Bank 
  • SBS Bank 
  • NZCU Employees and Baywide
  • NBS
  • NZHL Home Loans Insurance 
  • First Credit Union 

You can also shop around using glimp for banks offering affordable mortgage rates for different types of borrowers.   

Pay off your mortgage today! Check some lenders available in NZ and compare mortgage rates here at glimp!  

Offset Mortgage Options 


File:Westpac logo.svg - Wikimedia Commons

Mortgage Rate: 4.57% p.a.

See how much your home loan and repayments using the Westpac Mortgage Calculator. 


BNZ – Logos Download

Mortgage Rates: 4.55% p.a. For residential owner/investor occupied floating rate on your loan

See how much your home loan and repayments using the BNZ Mortgage Calculator. 


File:Kiwibank Logo.svg - Wikimedia Commons

Mortgage Rate: 3.40% p.a.

See how much your home loan and repayments using the Kiwibank Mortgage Calculator. 


ASB Bank - Logos, brands and logotypes

Mortgage Rate: 4.55% p.a.

See how much your home loan and repayments using the ASB Mortgage Calculator. 

The Co-Operative Bank 

Coop Bank logo - New Zealand Bankers' Association

Mortgage Rate: 4.40% p.a.

See how much your home loan and repayments using the Co-Operative Mortgage Calculator. 

Shane Egan (Popup) , 2023-07-10

Excellent service. Responsive and easy to deal with. Got me an awesome deal on Broadband. Well worth calling to see what they can do. 👍

Jamie Martin , 2023-06-18

Really great service, helped us save about 30% on power plus a free $100 sign up bonus. Very fast and efficient.

Kat W , 2023-06-20

Very helpful and informative. Lovely chatting with them on the phone, helped me find a power supplier, pretty simple and straight forward

Dee Painter , 2023-08-08

So easy to use, very helpful and got a great deal with my power and gas