How can we help?

Give us a call: 0800 755 779
Monday - Friday 8:30am - 5:30pm NZT

Send us a message:
hello@neo.nz
152 Fanshawe Street, Auckland CBD, 1010, New Zealand.

Or if you’d like to enquire about our super-low home loan rates, complete this form:

Frequently asked questions

Interest rates

  • The Neo home loan interest rate is determined by the Official Cash Rate (OCR), which is set by the Reserve Bank of New Zealand. The OCR is the wholesale rate for borrowing money, so market interest rates generally track changes in the OCR. The OCR is reviewed seven times a year and when a change occurs, Neo's interest rate will be adjusted, usually within 30 days of an OCR change.

  • Right now, we're set on providing super-low home loan interest rates, while giving people flexibility (like making lump sum payments or selling your home without break fees). We don't want to lock people into inflexible contracts that come with fixed interest rates. We think it’s just better that way.

  • We don't have branches and other high costs. Instead, our cost structure is low and our business is agile. That's part of the story – interestingly, in most countries, variable/floating home loan interest rates are lower than fixed interest rates. In New Zealand, the big banks typically charge a lot more for floating interest rates. We think that's unreasonable for New Zealanders wanting flexibility, but not wanting hefty break fees. You'll find that our floating home loan interest rate is typically much lower than both the big bank's fixed and floating interest rates.

  • Yes. You will need to cover the Mortgage Adviser commission, which is 0.65% of your loan amount – their commission is added to your loan. You may need to engage a Property Lawyer for the legal work required to complete a property transaction and this will incur a fee (your chosen lawyer will be able to quote their fee prior to commencing any work). We may also need a valuation on your property (typically costing between $500 and $1000). If you are refinancing, your Mortgage Adviser will confirm with you any Neo refinancing costs.

  • Neo doesn't offer an upfront cash contribution (that has a cash claw-back in the fine print). We prefer to give you a very low home loan rate. Your Mortgage Adviser will show you how much you'll save, factoring for cash contributions that you may have missed out on.

Company stability

  • Neo is not a bank or a second-tier lender. Neo is something new. We specialise in home loan lending only through Mortgage Advisers and provide loans with super-low interest rates, no fixed contracts and fast decisioning. Neo is New Zealand owned and operated, well-funded and backed by large global banks and local New Zealand investors.

  • Neo has been in business since early 2021, and we launched to the public in October 2022.

  • Neo is not a bank – we're a challenger to the big banks – a home loan company created by banking industry experts and technology entrepreneurs. We provide home loans that don't cost the earth – lower interest rates, no fixed rate contracts and fast decisions. Easy.

  • Neo is not a second-tier lender but something new. Second-tier lenders typically lend to people that the banks won't. Because of this, their interest rates are usually quite high. Neo has super-low home loan rates, fast turn-around times and no locked-in contracts.

  • Neo is a well-funded company with a very low cost structure and strong future growth potential. Because of this, we have safeguarded the business' stability as much as we can. Most importantly, we are not a deposit-taking lender – that means you wouldn't be at risk of losing money. Instead, in the unlikely scenario of receivership, your home loan and security would be transferred to another lender. We would communicate with you quickly about your options.

Mortgage Advisers

  • No sorry – we only work with select accredited Mortgage Advisers in New Zealand. They're the experts when it comes to home loan advice and guidance. Our experience tells us that the process is also more efficient and seamless this way. Find a Mortgage Adviser here.

Credit policy

  • Neo will lend you up to a maximum of 75% of the value of your property. This applies whether you are borrowing against an owner-occupied property or an investment property.

  • Neo is not a registered bank, so is not subject to the RBNZ restrictions currently imposed on registered banks. This is particularly attractive for property investors seeking to extend their property investment portfolio without having to come up with a 40% deposit.

  • Yes. You will need to have a 25% deposit to contribute towards the purchase of your new home, in addition to meeting all of Neo's credit criteria and terms and conditions. But other than that, we will gladly help.

  • There are no upfront fees when you are borrowing from Neo. We don't charge an application fee. There will be a nominal charge of $250 required to be paid for the cost of preparing our mortgage and lending instructions, but that is it. You will need to discuss with your financial adviser what fees they require however, and this can be paid either directly to your financial adviser or added to your home loan.

  • At this stage, Neo only accepts payments to your home loan by direct debit. This can be on a fortnightly or monthly basis and will be agreed upon with you to coincide with your regular income cycles. With a Neo home loan, interest is charged on the same day as your loan payment falls due, which can help you to repay your mortgage faster. In addition, you can make lump sum payments at any time without incurring an early repayment fee. This is because Neo only offers a variable or floating rate home loan. If interest rates rise, we will advise you within 30-days of the change to your interest rate, and make arrangements to adjust your loan payments so that your loan is repaid within the original term of the loan. If interest rates fall, you can either opt to retain your current level of repayments or adjust your payments down to free up extra household income. Neo will be in touch with you at the time to discuss your options. Alternatively, you are welcome to contact Neo at any stage to discuss anything to do with your loan payment(s).

  • Yes. Neo offers interest-only payment terms for between 5 - 7 years, after which the loan payments will revert to both principal and interest for the remaining term of your loan. You choose your preferred interest-only period, starting from a minimum period of 1 year.

  • Yes. The minimum amount for a Neo home loan is $100k. The maximum amount is between $1.5m to $3m depending on where in New Zealand the property that you are borrowing against is located. These are some of the conditions imposed on Neo by their funding providers. Over time we anticipate that these restrictions will ease.

  • With a Neo home loan you are able to access an equity release of up to $500k against the value of your property, subject to all other lending criteria being met. This can be used for any purpose including debt consolidation.

  • At Neo, we appreciate that people's financial circumstances can change, sometimes very quickly. As a responsible lender, Neo abides by the requirements of the Consumer Credit Contract and Financial Advisers Act, and responsible lending guidelines. This includes treating customers fairly and with respect in situations where our customers are experiencing (or may experience) financial hardship. Should this situation apply to you at any time during the life of your home loan, you can find the details of Neo's hardship process and guidelines on how to make a hardship application, on our home page here. Neo encourages their customers to act swiftly in such circumstances. The best way to do this is to contact us as early as possible, so that we can guide you through the process, working through your situation with you, in order to find the best possible solution for your circumstances.

  • You work with your financial adviser to provide all of the necessary information and details to make a home loan application to Neo. Provided we have all the information we need to assess your application when we receive it, we aim to have an answer for you within 24 - 48 hours. We will do this through your financial adviser.

Value

  • In most cases, the answer is yes. We suggest contacting a Mortgage Adviser to find out. They will show you the savings and help you compare this against your current lender.

Fees, charges & interest rate changes

  • Every approach comes with certain risks, whether you fix or float. The risk with a floating interest rate is that rates could continuously rise, increasing your mortgage repayments. Make sure you consider how much lower Neo’s interest rate is, and talk to your Mortgage Adviser about the risks associated with all interest rate types.

  • You may not have been told you were charged a fee, however, the fee is usually built into the bank's interest rate. Our fees and charges are disclosed and explained upfront.

  • No. We don't charge break fees. You can leave whenever if suits you. If you sell your home or decide to pay a lump sum, we won't charge you a break fee.

  • The Neo home loan variable interest rate is designed to go up and down, aligned to the Reserve Bank's Official Cash Rate (OCR). This is how we keep your repayments as low as possible. In addition to this, you are not locked into a fixed-term agreement, so you can leave us at any time. Given this, it would not be in our best interest to increase our interest rates unreasonably. We're also obsessed with making home loans more affordable for New Zealanders, so an unreasonably high variable interest home loan rate doesn't align with our values.

Who is Neo for?

  • Neo offers home loans to anyone who wants a super-low interest rate, combined with the flexibility of not being in a fixed contract (that comes with hefty break fees). Anyone who meets our credit criteria can apply – ask your Mortgage Adviser to see if you qualify.

  • Yes. So long as you meet our credit criteria, you don't have to be a salaried employee.

Speed of decisioning

  • In most cases, you'll have a response within 48 hours, depending on the time of day you applied. If your application is urgent please let your Mortgage Adviser know and we'll do our best to get back to you as soon as practical.

  • Once Neo has approved your home loan, your Adviser will be in touch to confirm with you the settlement date and your solicitor details. Neo then instructs their solicitors to prepare all the lending documentation in readiness for settlement. Once all the lending documentation is ready, our solicitors will forward this to your solicitors for signing. There is nothing for you to do until your solicitor contacts you to arrange a time to sign the documents. The signed lending documents are returned to Neo's solicitors, who will forward the documents to Neo a few days before settlement is due.

  • Following settlement, you will receive an automated prompt asking you to register on our banking system so that you can see your home loan account(s). In the first few days following settlement, you will receive an introduction call from Neo to check that everything has gone smoothly. At this time, we will also check with you that your personal information and home loan details are correct on our banking system. We will also help you with any other questions that you might have.

  • The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) place obligations on New Zealand's financial institutions and other identified organisations to detect and deter money laundering and terrorism financing.

    The AML/CFT Act means all financial institutions are required to collect specific information from customers to verify their identity and address. Customers may need to provide more information about themselves than they have in the past, for example, the source of funds for a deposit.

  • We use next-generation technology to determine creditworthiness very quickly. As long as our system has all the information we need from your Mortgage Adviser, we can typically give a decision in less than 48 hours.

  • The Credit Contracts and Consumer Finance Act 2003 (CCCFA) is legislation to ensure responsible lending and that customers clearly understand what they are agreeing to. We are adhering to the recent changes by being transparent in how our rates and fees are calculated and by providing clear documentation and communications about our offers and services. The technology that we use for decisioning around a home loan application allows us to demonstrate the affordability of the home loan terms that we offer to you.

Working with Neo

  • You can only apply for a home loan with Neo through an accredited Mortgage Adviser. We only work with select accredited Mortgage Advisers – so you're always dealing with an expert when it comes to home loan advice and guidance through the whole process. We think it works best this way. Find an Adviser here.

  • No. You will keep your transactional banking accounts with your current bank. You'll just work with us on your new home loan.

  • You can check all details about your home loan by using your secure login