The questions and original answers

Given your situation — self-employed/contractor income, first home buyer, ~20% deposit, and a strong preference for repayment flexibility — I would prioritise lenders that offer good floating, revolving credit, or offset structures, rather than simply chasing the lowest fixed rate.

A 20% deposit is a strong position because it may give you access to more competitive lending, but your variable income means the loan structure matters a lot.

Lenders I would put on your shortlist

1. Kiwibank — strong fit for variable income + flexibility

Why it suits you:

• Its revolving credit home loan works like a large overdraft: there is no fixed repayment schedule in the same way as a standard fixed loan, which can suit people whose income arrives unevenly. Kiwibank
• Its variable-rate loans allow extra repayments and increased regular repayments without the restrictions that often apply to fixed loans. Kiwibank
• Its offset home loan can be useful if you build up cash buffers between contracts, because linked accounts reduce the amount of the loan charged interest. Kiwibank

Potential structure:

• 70–80% fixed for repayment certainty
• 20–30% revolving/variable so you can throw extra income at the mortgage when contracts are strong

Best if: you want flexibility but still want a fairly straightforward setup.

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2. BNZ — very good if you want to manage cash flow actively

Why it suits you:

• BNZ offers TotalMoney, an offset-style loan where money in connected accounts reduces the balance used to calculate interest. BNZ
• Its floating loans allow extra repayments and lump sums without early repayment charges. BNZ
• Its revolving credit option (Rapid Repay) can suit people who receive irregular income and want to use cash flow to reduce interest. BNZ

Potential structure:

• Fixed loan portion for your baseline repayments
• TotalMoney/revolving portion for surplus contract income, tax reserves, and savings

Best if: you are organised with budgeting and keep good separation between spending money and mortgage money.

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3. ANZ New Zealand — strong revolving-credit option

Why it suits you:

• ANZ’s Flexible Home Loan is a revolving credit facility where you can pay money in and redraw funds when needed. ANZ Bank
• It can work well for contractors because income can immediately reduce your mortgage balance and interest cost, while still leaving access to funds if work slows. ANZ Bank

Watch-outs:

• Flexible/revolving products usually come with a higher interest rate and/or fees than a basic fixed mortgage, so they are best used strategically rather than for the entire loan. ANZ Bank

Best if: your income swings significantly and you are disciplined with money.

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4. ASB Bank — good if you want a flexible split loan

Why it suits you:

• ASB supports splitting a mortgage into different portions, combining fixed, variable, and revolving credit components. ASB Bank
• Its Orbit revolving credit product lets you repay and redraw within your approved limit. ASB Bank

Best if: you want a mainstream bank with a flexible structure rather than a single all-or-nothing mortgage.

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The structure I would investigate first

For a contractor buying alone, I would usually ask lenders to quote something like:

• 70–80% fixed (for example, 1–3 years)
  • Gives you predictable minimum repayments.
• 20–30% revolving credit or offset/floating
  • Lets you make unlimited extra payments.
  • Gives you a buffer when income is strong or weak.
  • Lets you pay large chunks down after good contracts.

I would be cautious about putting 100% of the loan on revolving credit unless you are very disciplined, because the flexibility can also make it easier to redraw and accidentally maintain a high balance.

Questions I would ask every lender/broker

Because you are a contractor, I would ask:

1. “How do you assess my income — average of the last three years, most recent year, or something else?”
2. “Can I increase repayments without fees?”
3. “How much can I pay extra on fixed portions before break costs apply?”
4. “Can I split the loan between fixed and flexible portions?”
5. “If my income drops for six months, what options do I have to reduce repayments?”

I would also consider using a mortgage adviser who regularly handles self-employed borrowers, because contractor income assessment can vary significantly between lenders even when the financials look similar.

Based on your priorities, my first calls would probably be Kiwibank, BNZ, ANZ, and ASB, comparing the loan structure and flexibility rather than only the advertised interest rate. Kiwibank