# NZ mortgage calculator questions

Source: https://buynew.co.nz/mortgage-calculator.

## Can I use a 5% deposit?

You can model a 5% deposit, 20% or any other deposit size here. Kāinga Ora First Home Loans can support a 5% deposit for eligible buyers through participating lenders. Approval depends on the scheme and lender criteria. Low-deposit loans may have extra fees or a different interest rate; those costs are not automatically included in this calculator. Check the current requirements with Kāinga Ora and your lender.

## How are mortgage repayments calculated?

This calculator uses the principal-and-interest annuity formula. Your annual interest rate is divided by 52 for weekly, 26 for fortnightly or 12 for monthly repayments. It assumes equal periods, payments at the end of each period and the same rate for the full term. Actual bank calculations can differ because of daily interest, payment dates, fees and rounding.

## Does paying weekly or fortnightly save interest?

Each frequency here is calculated to repay the loan over the same term. A fortnightly amount is not simply half a monthly amount, and a weekly amount is not one quarter. Some lenders offer accelerated arrangements with more paid each year. To model paying more, add an extra payment and check the arrangement with your lender.

## Can extra repayments pay off my mortgage sooner?

In this estimate, extra payments reduce the principal from the first repayment while your base repayment stays the same. This can shorten the loan and reduce interest. Your lender may restrict extra repayments on fixed-rate loans or charge fees, so check your loan terms.

## Is the example interest rate a current mortgage offer?

No. The example rate is an editable assumption, not a live bank rate or a lending offer. Enter a rate quoted by your lender and try a higher rate to see how repayments could change. A fixed-rate period is usually shorter than the full mortgage term.

## What other costs should I budget for?

Repayments exclude legal and valuation fees, lender charges, council rates, insurance, maintenance, body corporate or residents association fees, and any building or land costs outside your entered price. This calculator does not assess income, credit, affordability or lending eligibility.