Co-operative Bank Home Loans

Struggling to save a 20% deposit? Co-operative Bank may be able to help you get into your first home.


The only bank in New Zealand to share its profits with its customers, Co-operative Bank shared $2.1 million to over 115,000 Kiwis in 2019. While fairly small compared to other national banks, Co-operative prides itself on having excellent customer satisfaction, with the ‘right amount of human touch’ as a digital business.

When it comes to home loans, this bank has options to suit whether you are buying your first home, building a new home or investing in property. If you haven’t been able to save a 20% deposit just yet, Co-operative may be able to approve a loan with a low equity interest rate premium.

Home loans offered by Co-operative

  • Fixed home loans. With loan terms of up to 30 years and interest rates ranging from 3.49% for 6 months to 3.99% for 4 years, a fixed-rate loan locks in your payment schedule for a time period chosen by you. This means that you can have certainty around what your payments are going to be so you can have more control over your finances.
  • Floating home loans. If you’d like more flexibility with when you make extra repayments, a floating home loan allows you to make deposits when you like without penalty. Your interest rate could start at 5.15% p.a., but may go up or down over your loan term depending on what is happening in the market.
  • Revolving credit home loans. Similar to an overdraft, a revolving credit home loan is used as an everyday account where you have your salary credited and pay expenses all from one account. While there is no fixed repayment schedule and you can withdraw funds up to your credit limit, you do need to meet a minimum monthly repayment. Interest is charged at 5.15% and based on the balance in your account.
  • First home loans. Co-operative Bank provides a low-deposit mortgage option for people wanting to buy their first home. If you have at least a 10% deposit, meet the eligibility criteria and want to borrow less than the maximum amount, you could be able to get into your new home sooner than you think. Interest rates in this situation range from 5.49% for 1-year fixed and 7.15% for floating.

Features and benefits

  • Structure to suit. Rather than having a fixed or floating home loan, you can combine the two to get the best of both worlds. You can also combine a fixed-rate home loan with a revolving credit home loan.
  • Extra repayments. On a fixed-rate loan, it’s possible to make extra repayments of up to 5% of the balance each year without being charged early repayment fees. There are no penalties for making early repayments on a floating home loan.
  • Loan protection insurance. For peace of mind in case something unexpected happens and you can’t meet your repayments, Co-operative Bank provides loan protection insurance.

How do I apply?

If you feel comfortable with the rates and terms on offer from Co-operative Bank, make sure that you meet the eligibility criteria and have the required documentation. To start your application, you can either phone 0800 554 554, visit your local branch, or make an appointment with a Mobile Mortgage Manager who can come to your home or office at a time that suits.

To be eligible for a Co-operative Bank home loan, you need to be at least 18 years of age, have a regular income and meet the standard lending criteria.

Documents required

During the application process you’ll be asked to provide the following:

  • Photo ID. A current New Zealand Driver’s Licence or passport
  • Proof of address. A recent utility or phone bill showing your name and address.
  • Proof of income. A letter from your employer confirming your salary or recent payslips.
  • Bank statements. Two months’ of statements for your everyday banking account.

Read more on this topic

  • ANZ Home Loans Find out how you can get special interest rates for your ANZ home loan when you have a 20% deposit and your salary credited to your transactional account.
  • ASB Home Loans With a lending support team available seven days a week and different repayment options, an ASB home loan is worth considering for your property purchase.
  • Westpac Home Loans With First Home Loan and Family Springboard options, Westpac has some helpful options for first time home buyers to consider.
  • SBS Bank Home Loans SBS has partnered with Kāinga Ora to provide First Home Loans for Kiwis with a low deposit, plus there are options for investors and existing homeowners.
  • TSB Home Loans If you have a minimum of 20% deposit, you’ll be rewarded with a special interest rate when you take out a TSB home loan.
  • HSBC Home Loans With floating, fixed, construction and home equity options, HSBC home loans are worth considering if you meet the eligibility criteria.
  • Resimac Home Loans Discover about non-bank home loan lender Resimac and its products.
  • How to use KiwiSaver to buy a home Your KiwiSaver funds are not just for retirement. Find out how you can use the KiwiSaver First-home Withdrawal to help purchase your first home.
  • Online home loans and lenders Ignoring the online home loan market can see you miss out on a range of competitive deals. Find out more about online lenders.
  • Reverse Mortgages Find out how reverse mortgages can allow you to access the equity in your home to pay for retirement costs.
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