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Co-operative Bank mortgages

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

The Co-operative Bank is the only bank in New Zealand to be owned by its customers. While relatively small compared to other national banks, the Co-operative prides itself on having excellent customer satisfaction, with the “right amount of human touch”.

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

The Co-operative Bank mortgages

Name Product Standard Rates From Special Rates From Loan Terms Available Application Fee
The Co-operative Bank Fixed Rate Home Loan
3.35%
2.85%
6 months to 5 years
$350
The Co-operative Bank Floating Rate Home Loan
4.55%
4.55%
N/A
$350
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  • Fixed-rate mortgage. With loan terms of up to 30 years and fixed-interest rates from 6 months to 5 years, a fixed-rate mortgage locks in your payment schedule for a period chosen by you. This choice means that you can have certainty about your payments, so you have more control over your finances. In addition, you can make one extra repayment each year, without penalty, of up to 5% of the loan balance (when you fixed the loan).
  • Floating mortgage. If you’d like more flexibility around making extra repayments, a floating mortgage allows you to make deposits when you want without penalty. However, your interest rate may increase or decrease during the loan term, depending on the market.
  • Revolving credit mortgage. Like an overdraft, you use a revolving credit home loan 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 need to meet a minimum monthly repayment. In addition, interest is charged based on the balance in your account.
  • First Home Loans. Kāinga Ora provides a low-deposit mortgage option for people wanting to buy their first home. If you have at least a 5% deposit, meet the eligibility criteria and wish to borrow less than the maximum amount, you could be moving into your new home sooner than you think.

Features and benefits of The Co-operative Bank Mortgages

  • Structure to suit. Rather than having a fixed or floating mortgage, you can combine the two to get the best of both worlds. You can also choose a fixed-rate mortgage with a revolving credit home loan.
  • Extra repayments. On a fixed-rate loan, the bank may charge early repayment fees for additional payments. There are no penalties for making early repayments on a floating mortgage. Make sure you check out the terms and conditions carefully.
  • Loan protection insurance. For peace of mind, if something unexpected happens, and you can’t meet your repayments, the Co-operative Bank provides loan protection insurance.
  • Pre-approval. If you pre-apply for a home loan and receive approval, it is valid for 60 days, which gives you time to find your ideal property.
  • First Home Grant. If you have had a KiwiSaver Scheme for between 3 and 5 years and wish to buy your first home, it may be possible to use these savings for your first home through the First Home Grant, which is a government contribution.

Co-operative Bank fees

When comparing Co-operative mortgages, you need to account for any fees, such as:

  • Loan establishment: You pay $350 every time you apply for a home loan
  • Loan top-up. If you top up your loan, it costs $200
  • Loan variation. If you request a variation to your loan, for example, the interest rate, you pay $100 each time
  • Early or part repayment of a fixed-rate mortgage. If you choose to repay or restructure your mortgage during its fixed-rate period, the Co-operative Bank charges you an early repayment recovery cost of $100

Before you apply for a Co-operative Bank home loan

Before you apply for a Co-operative Bank mortgage, it pays to take a look at your finances, including:

  • Expenses. Including living costs (utility payments, food), credit cards, student loans and entertainment
  • Total income. For example, wages, rental income, savings and shares etc
  • Deposit. With a larger deposit, you need to borrow less, which means your repayments are lower, and you become mortgage-free faster

How do I apply?

If you feel comfortable with the rates and terms on offer from Co-operative Bank, and have compared other options, make sure you meet the eligibility criteria and have the required documentation. Then, 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 mortgage, 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, the Co-operative Bank asks you 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 worth of statements for your everyday banking account

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