Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
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 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”.
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. 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 mortgage. With loan terms of up to 30 years and interest rates ranging from 2.55% for 6 months to 3.19% for 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 around what your payments are going to be, so you have more control over your finances.
- Floating mortgage. If you’d like more flexibility around making extra repayments, a floating mortgage allows you to make deposits when you like without penalty. Your interest rate could start at 4.40% p.a. but may go up or down over your loan term depending on what is happening in the market.
- Revolving credit mortgage. 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 4.40% 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 moving into your new home sooner than you think. Interest rates in this situation range from 4.55% for 1-year fixed and 6.40% for floating.
Features and benefits
- 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 combine a fixed-rate mortgage with a revolving credit home loan.
- Extra repayments. On a fixed-rate loan, you may be charged early repayment fees for extra 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 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 mortgage, you need to be at least 18 years of age, have a regular income and meet the standard lending criteria.
During the application process you are 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.
More guides on Finder
Migrant banking: Opening a bank account in Australia
Having an Australian bank account is crucial in order to access and manage your funds in your new home country.
What is Yearn Finance?
Learn how to use DeFi aggregator Yearn Finance to earn interest on your cryptocurrency.
Credit cards vs buy now pay later
Both buy now pay later plans and credit cards give you ways to pay off purchases over time – here’s how they compare.
First Credit Union review
Review the loan options at First Credit Union, a non-bank lender offering personal loans, debt consolidation, car and home loans.
3 ways to pay off Christmas debt
Check out these three ways to pay off Christmas debt and start your year off on the right financial footing.
BNZ KiwiSaver scheme review
BNZ offers six KiwiSaver funds for different risk profiles, including a unique First Home Buyer Fund.
ANZ KiwiSaver scheme review
ANZ offers six KiwiSaver plans and a handy Lifetime Option for investors.
Investing – your options explored
Your simple guide to the different types of investments, how they work, and how to choose the right investments for your needs.
Passive income ideas for New Zealand investors
Looking for an easy way to earn money while you sleep? Investing in shares, peer-to-peer lending and renting out property can all offer the returns you desire.
The Co-operative Bank Fair Rate credit card
Transfer an existing balance and pay 0% p.a. for 12 months, plus enjoy a low interest rate and account fee with The Co-operative Fair Rate card.