Enjoy a place of your own with yourWestpac Home Loan

Westpac Home Loans

Contents

04 You’re in control of your home loan

06 Choosing the loan option that suits

08 About split home loans

10 How do I make repayments?

12 Top tips for paying off your home loan faster

14 Ready to get started?

We know you’d rather talk about your new home than a new home loan. After all, buying a home is an exciting journey.

But we’d like to show you how choosing the right home loan can be just as satisfying.

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Why choose Westpac?We can think of a few good reasons! Let’s start with these:With your Westpac home loan pre-approved, you’ll get a free E-Valuer property report from QV.co.nz to help you check out a property you like and comparable sales. You’ll also gain access to HomeClub; Westpac’s home buying hub full of property information and values, calculators, tools, tips and advice.

It’s not easy to find a home that fits all the things you’re looking for. With a Westpac pre-approval you’ll be able to start looking around, knowing how much you can afford to spend.

We understand that life can be busy, so we have experienced Mobile Mortgage Managers who can meet you wherever you like, at the time that works best for you, seven days a week.

We have loads of home loan options to suit your lifestyle and needs, like Choices Offset; which could help you save thousands and cut years off your home loan.

Turn the page to learn more about our home loan options and how you can mix and match to find the loan style that suits you best.

At Westpac we put you in charge, so you can mix and match to create the home loan that suits the way you live now. You can choose between different repayment types, different interest rates and different payment terms. Set your home loan up the way you want it now, and then change it when your life changes. We’re here to help you get the most out of your loan today, tomorrow and in the future.

Did You Know?Westpac has a super handy home-buying tool online, called HomeClub®. It helps you to save, collect properties you’re interested in, get valuations and even make offers. And it’s free! Visit homeclub.co.nz to try it out, register and get more information about houses you’re interested in.

You’re in control of your home loan

Handy TipPay lump sums off your floating

rate home loan and reduce the time it takes to repay it.

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At Westpac we have a range of flexible loan options, so you can choose just one type, or mix and match to enjoy the benefits of both fixed and floating, or capped rates. A good way to start is with the table below, to give you an overview of all your options.

Choosing the loan option that suits

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Name of Westpac Home Loan

Type of interest rate

What is it? It’s for you if: Key Benefits

Choices Floating

Floating rate The interest rate varies with the market but you can repay lump sums whenever you like without any extra cost.

– you want the flexibility to pay lump sums off your home loan

– you’re comfortable knowing that interest rates could change

– you pay a floating interest rate that may increase or decrease in line with the market

– pay off some or all of your loan whenever you like without incurring any additional costs

– increase your regular repayments at any time without penalty

– switch some or all of your floating rate loan to a fixed rate at any time

Choices Offset

Floating rate Your eligible Westpac transaction and savings account balance offsets your home loan so you only pay interest on the difference. The interest rate can go up or down when the market changes and gives you the flexibility to pay off some or all of the loan at anytime.

- you want to reduce the amount of interest you pay

- you want to reduce the length of your loan

- you want to focus on saving as well as paying off your home loan

- you’d like to keep your home loan and savings in separate accounts

- you’re comfortable with a floating rate knowing that interest rates could change

- you could save thousands on your interest payments and reduce the length of your home loan

- your accounts stay separate, giving you flexibility to access and manage your money to suit your needs

- link up to 10 eligible Westpac transaction and savings accounts, including those of your parents or children to help increase your offset benefits

- have the flexibility to pay lump sums off your home loan at anytime

Choices Fixed

Fixed rate You ‘fix’ your interest rate at a certain amount and it will stay the same for the fixed rate term, even if interest rates in the market change. That way, your repayments stay the same throughout the fixed rate term.

– you want to set your repayments and know they’re not going to change during the fixed rate term

– you don’t think you’ll need to make lump sum payments off your loan during the fixed rate term

– fix the term of the interest rate you pay from 6 months up to 5 years

– budget with confidence knowing your repayments will not change for the fixed rate term

– increase regular repayments up to 20% at any time during the fixed rate term without penalty

Choices Everyday Floating

Floating rate Your home loan and daily transactions are combined in one account and when your income is paid in, it immediately reduces your home loan balance so you could pay less interest

– you’re happy to have your home loan and transactions in one account

– you want to save interest on your home loan

– the benefits of a floating rate, plus: – flexible revolving credit – helps you save on interest costs

Choices Capped

Capped rate Your interest rate is capped for a set term, so you’ll pay less interest if rates fall, but even if rates do go up, your interest rate won’t go higher than the capped rate during the capped rate term.

- you want to cap the interest rate you could pay for the next 1 – 2 years

– you want to cap the interest rate you could pay for the next 12 months

– you still want to be able to benefit if interest rates fall

– you may want to make lump sum payments off your loan

– you may want to increase your home loan repayments

– benefit if rates go down during your ‘capped’ interest rate term

– never pay more than your ‘capped’ rate even if rates rise

– you can pay off some or all of your loan whenever you like without incurring any additional costs

– you can increase your regular repayments at any time without penalty

Did You Know?Our home loans have a maximum term of 30 years. But we know a lot can happen in 30 years, and that’s why you may be able to take your home loan with you if you move house.

Handy TipFlick back over to the Home Loan Options page for a table comparing loans styles including fixed, floating, capped and split loans.

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You have the choice to split your Westpac home loan and combine different interest rate types. You could have two different fixed rate terms, or a mix of floating, fixed and capped rates. Why would you? It lets you choose the benefits you want from your home loan, such as the certainty of a fixed rate term, as well as the flexibility of a floating rate loan. Read on for more benefits.

Some of the benefits of splitting your home loanIt’s smart, because:

– having a portion on a floating or short-term fixed rate lets you take advantage of low interest rates right now

– it’s flexible – you can pay the floating portion off as fast as you like without additional cost

– it could save you even more on interest (with our Choices Everyday Loan – ask us how)

It could also bring you peace of mind, because:

– the greater the fixed rate portion is, the more certainty you will have knowing what your monthly repayments will be

– you can choose a fixed rate term that’s right for you, or even select a combination of fixed rate terms on the one loan

– the floating portion provides you the flexibility to redraw on your loan, whatever need may arise

– the floating portion can be changed into a fixed rate term at any stage

How can you split your loan? Try it yourself.If you’d like to get more hands-on, go to www.westpac.co.nz to work out your own home loan scenario online with our handy split home loan calculator.

About split home loans

Table loan

Interest Only loan

Reducing (Flat) loan

Revolving Credit loan

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How do I make repayments?

Westpac home loans are designed to be flexible, even down to the way you repay your loan. Generally our home loans are ‘repayment’ loans, which means you pay off some of the loan and interest with each repayment. That way your loan is paid off within the agreed term.

Depending on your loan type, you can increase or reduce your home loan payments depending on what’s happening in your life, changing your repayment style to suit you.

Repayment optionsDifferent loan types offer different benefits and repayment options. Let’s take a look.

With a Table loan your regular payments are the same each time (unless interest rates change). At first most of the money goes towards the interest you owe, but as your loan starts to go down more of each payment goes towards the principal.

This is the most popular type of home loan because it gives more consistency to your repayments.

An Interest Only loan is where you pay only the interest owing each fortnight or month, but nothing off the principal. These are usually short-term loans (up to 5 years) to help keep payments low while you’re building or renovating, or if you need bridging finance while you try to sell another home.

You’ll need to repay the outstanding loan at the end of this period – or get another loan.

With a Reducing Flat loan you pay a set amount off the loan regularly plus the interest you owe. So your repayments are a lot higher at the start than later on but this can save you interest because you pay more off the principal earlier on.

With a Revolving Credit loan your loan and everyday banking are combined in one account. There are no set repayments but you’ll need to make sure your balance stays below the limit at all times.

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Did You Know?Our revolving credit loan is called Choices Everyday Floating. It gives you the most flexibility in your repayments.

Principal

Regular payment amountInterest

Loan balance

Loan limit

Regular payment amount

Interest

Principal

Regular payment amount

Interest

A note about early repayment penaltiesPaying off your fixed rate home loan early, or breaking the fixed term of your fixed rate home loan in order to get a lower rate can mean that a break cost will be charged. How come? Because in doing so you break the contract you entered into with us when you signed up for your fixed term, and as a result we may have to rearrange funding positions that we have in place in the wholesale interest rate market. Any cost that arises because of this is passed on to you. Sometimes this ‘break cost’ is also called the ‘prepayment cost’.

If you want to know the exact costs associated with breaking your fixed rate home loan we can provide you with a quote. Go to www.westpac.co.nz to learn more.

Need more info?There’s plenty more to learn about Westpac home loans at www.westpac.co.nz Or if you’d like to set up a time to meet with one of our home loan specialists in-branch, call Westpac on 0800 177 277.

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Top tips for paying off your home loan faster

– You could save thousands on your interest repayments and cut years off your home loan: Choices Offset gives you the ability to use the balance of your eligible Westpac transaction and savings accounts, as well as those of your immediate family’s to offset against your floating home loan – and only pay interest on the difference.

– Increase the amount you repay each month: it sounds obvious, but the more you repay, the less interest you’ll pay on your home loan in the long run

– Pay half your monthly loan repayment each fortnight: this works out that you make two extra payments per year (compared to when you pay monthly), reducing the overall interest costs you’ll pay over the repayment period of your loan

– Shorten the term of your loan: this means your repayments will increase and you’ll pay off your loan faster, with less overall interest payments

– Pay lump sums off your loan*: if you’ve saved up or received a lump sum, using this to reduce the outstanding balance on your home loan could reduce the time it takes to pay off the loan

*Remember - ‘break costs’ may apply if you have a fixed rate loan and you pay back part or all of it during the fixed rate term.

– Keep your monthly payments the same when the interest rate drops: this means more of each payment will go towards repaying principal (as opposed to interest)

– Think about a revolving credit account: with a revolving credit facility, when you pay your salary in into your home loan account your loan balance goes down – meaning you pay less interest

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Whether you’re buying your dream home, switching to us or topping up an existing home loan, we’re here to help.

There are a few ways you can apply for your home loan.

– Online: Go to www.westpac.co.nz, to apply for an online conditional approval. Your home loan application could be approved in just 60 seconds of submission! Or download our iPhone App from iTunes Store today!

– Call us: Talk to one of our home loan specialists by calling 0800 277 177, and arrange a time for a mobile mortgage manager to come to you

– In-branch: Pop into your nearest Westpac branch to set up a meeting

Need more info? Take a look online at www.westpac.co.nz or ask in-branch to make an appointment with a home loan specialist.

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Ready to get started?

This information is current at 13 September 2013 and may vary from time to time. The information in this brochure is intended as a guide only and doesn’t take into account your personal financial situation or goals. Westpac’s current home loan lending criteria and terms and conditions apply. An establishment charge may apply. A Low Equity Margin may apply. An additional fee or higher interest rate may apply to loans if the application is accepted but doesn’t meet the standard lending criteria. A Choices Offset Arrangement Set Up fee and Choices Offset Monthly fee applies. You can get a copy of the current disclosure statement for Westpac New Zealand Limited from any Westpac branch in New Zealand free of charge.

The free QV.co.nz E-Valuer property report is available with all home loan pre-approvals. The QV report provided is not a registered valuation but rather an estimate of the current market value of a property based on local, recent comparable sales. See QV.co.nz for more details. Westpac doesn’t accept liability for loss arising out of use of a QV report. HomeClub is a registered trademark of Westpac New Zealand Limited.

Westpac New Zealand Limited.

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