Home Loans: a range of options so you can really enjoy your new home

One of the best ways to borrow

Whether you're borrowing to buy or build, or re-borrowing to make alterations, buy a car or for some other purpose, a loan secured over residential property is one of the best ways to borrow. You may be able to borrow up to 80% of the property's value, with repayment terms of up to 30 years.

And if you take out a home loan between now and 1 June 2012, depending on your loan amount we'll give you up to $1,000 towards your legal and admin costs.^*
For a limited time. Terms and conditions apply. For full details click here.

Choosing the loan that's right for you

The Co-operative Bank has a range of home loans that offer competitive interest rates and have the flexibility to suit your needs and your financial circumstances:

 Fixed Interest Rate Loan

Certainty is the key benefit of a Fixed Interest Rate Loan:

• The annual interest rate will not change during the fixed term, meaning your repayments will be the same for the fixed term of your loan, making it easier to budget.
• You can choose from a six month, one, two, three or four year fixed term or a combination of these terms (e.g. place a portion of your loan on the one year fixed term and a portion on the three year fixed term).
• You may be able to hold a home loan fixed term interest rate with us for up to 60 days.** When we payout your loan you'll get the lower of the held rate or the rate for that term (offered by The Co-operative Bank) on the day of payout. If you choose to hold a rate with us, a fee will apply.
• If you need to break your Fixed Interest Rate Loan, before the fixed term expires, you may be required to pay an early repayment recovery cost* and fee.

 Floating Interest Rate Loan

Flexibility is the key benefit of a Floating Interest Rate Loan:

• You can make lump sum repayments or repay your loan early at no additional cost.
• You can change the amount of your repayments at any time, to suit your situation. If you want to go below the minimum repayment set for your contracted term talk to us and we may be able to help.
• The interest rate on your home loan will rise or fall with the market. We will advise you in advance of any changes.

 Discounted Floating Interest Rate Loan

Receive a 0.5% p.a. discount on the floating interest rate for the first 12 months of your loan term while still retaining most of the features of a Floating Interest Rate Loan. The minimum loan term is three years.

This option is particularly desirable to first home buyers as it allows for:

• Lower repayments in the first 12 months of the loan, providing extra cash to spend on typical first home purchases such as furniture, paint, repairs or renovations.
• Making larger than contracted repayments in the first 12 months to repay the original principal borrowed faster.
• Most of the flexibility of a Floating Interest Rate Loan while enjoying a discount on the annual interest rate in the first year of having the loan.

At the end of the 12 month period, your loan automatically reverts to the standard Floating Interest Rate Loan.

In selecting this option it is important that you are happy with a floating interest rate and are prepared to stick with it for at least 3 years. Early repayment administration fees and a cost recovery will apply if the loan is repaid within the first three years.

 Revolving Credit Facility

The ultimate in flexibility, offering a home loan and transaction account in one. With your income being credited into your account, you have control over how your balance is repaid and you may even be able to reduce the interest cost of your home loan.

With an account that combines your home loan and day-to-day banking, you can:

• Withdraw money up to your pre-approved limit at any time, using any of our services - e.g. ATM, EFTPOS, cheques and Telephone, Internet or TXT Banking.
• Repay as much or as little as you like (so long as you meet your minimum monthly payment).
• Take advantage of floating home loan interest rates for purchases of any type.
• Set up direct debits to pay your bills on the last possible day, thereby maximising your interest savings.

A credit limit is added to your Current Account and essentially, this facility operates as a large low-interest overdraft, secured by your property.

Your minimum monthly payment is made up of any interest and transaction, service, and facility fees charged since your last monthly statement.

This account will suit you if:

• You can work out your own budget and to stick to it.
• You regularly make extra repayments to loans.

We can provide you with a limit of up to 50% of the market value of your home. If you require more than this, talk to us about combining your revolving credit facility with any of our other Home Loan options.

 Combined Solution

A combination of any or all of the above can create a unique package designed to best suit your requirements. This works by splitting your total loan into separate loan accounts.

The best of both worlds is the key benefit of a combined solution. Having part of your total loan on a floating rate and part on a fixed rate allows you to mix the level of flexibility you want with the level of certainty you need.

Get your new home sooner

You may be able to purchase your first (or next) home sooner than you thought.

Visit your local branch before hitting the open homes. We'll help you work out how much you can borrow.

Decisions made fast

We'll work fast to give you an answer - if you have all of the required information at the time of applying we can usually make a decision by the next business day.

To ensure a quick approval process, please bring with you:

• Proof of income - a recent payslip or letter from your employer.
• Identification - such as a passport or a current New Zealand driver licence.
• Sale and Purchase Agreement - if you've already made an offer to buy.

Even if you're just thinking about buying a home - call in and see us

Depending on the amount of information you can provide when you see us, we can advise you of how much you can borrow and the price range you can look in. We can even help you with a savings plan for the deposit.

When you're approved, get covered at the same time

Buying a house is a big step in your life - and a good time to evaluate what insurance you might need. We can arrange your loan and your insurances all at the same time.

We can arrange the following:

• Asset Care - protect your home, contents and vehicle.
• Loan Instalment Care (with or without Trauma Care Option) - cover for sickness or injury.
• Life Plus - protect the ones you love should the unexpected happen.

Managing your Home Loan

If you have an existing Home Loan we can help you decide which home loan options would best suit your needs.

Apply for a Home Loan today

To find out more or to start the application process, drop into your local branch, or call us today on 0800 554 554.

To get started now, download a copy of the application for credit - over $3,000 form (PDF 79KB). You'll need Adobe Acrobat Reader. If you don't have it, don't worry - it's free. Just visit the Adobe site to download a copy.

*The Co-operative Bank applies the following formula to determine if an early repayment recovery cost is applicable - The Co-operative Bank Early Repayment Formula (PDF 33KB).

**Fixed Rate Hold is not an option with existing floating rate loans held with The Co-operative Bank.

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