Interest on the daily balance
The interest on your home loan is calculated on your daily balance, this is the case with most banks in NZ. This means that additional regular repayments can make your debt free faster.
However it is sometimes difficult to commit to additional payments.
Best of both worlds
By using a revolving credit home loan you can make additional repayments without making a formal commitment to keeping them consistent. You also have the added benefit of knowing that any past extra payments can be taken back for any emergencies.
