Interest rates and fees
Find out how interest rates work, the standard fees we charge, and understand what borrowing may cost you.
Interest rates
Interest rates vary from person to person and are based on your individual circumstances. When you apply for a loan, we assess a range of factors to determine the interest rate we can offer you. This helps ensure lending is responsible and reflects the level of risk associated with each loan.
For loans secured against an asset, such as a vehicle, our interest rates range from 10.30% to 22.30% per year. Unsecured loans range from 13.75% to 23.75% per year. Both types are fixed for the term of the loan.Your loan’s interest rate depends on a number of factors including:
- information provided by credit bureaus and other third parties
- your credit history with MTF Finance, if you’re a recent customer
Secured loans
Secured loans are backed by an asset, such as a vehicle. Because the loan is secured, interest rates are generally lower than unsecured loans. This is because, if you’re unable to meet your repayments, the asset may be repossessed and sold to help recover the outstanding balance.
The example below shows how interest rates and repayments may differ depending on credit rating. These examples are provided to help you understand how borrowing costs can vary.
Example: Borrowing $10,000 over 36 months without MBI or Payment Waiver
| Credit rating | Sample interest rate (p.a.) | Weekly payment | Difference |
|---|---|---|---|
| Excellent | 10.30% | $79.45 | -$4.59 |
| Great | 12.30% | $81.72 | -$2.32 |
| Good | 14.30% | $84.04 | $0.00 |
| Ok | 16.30% | $86.39 | $2.35 |
| Not so good | 18.30% | $88.79 | $4.75 |
All amounts in the table above are an example only and are not an offer of finance. Each weekly repayment amount is based on the interest rate mentioned and an establishment fee of $380, a Personal Property Securities Register fee of $10.35 and a monthly maintenance fee of $7.54. Actual interest rates and fees may be higher or lower. The total amount payable for "Excellent" is $12,393.72, "Great" $12,749.04, "Good" $13,110.32, "Ok" $13,477.32, and "Not so good" $13,850.64.
When we charge interest on secured loans
We calculate and add interest to your loan on the same day each month – it’s the same day as your loan start date. For example, if you started your loan on 2 February, you’ll be charged on the 2nd of every month. If your loan started on the 29th, 30th or 31st, interest is added on the last day of shorter months, for example 28 February.
Talk to our friendly team if you would like to know more about how interest is calculated.
Missed payments
If you miss a payment, we’ll let you know by text, phone, email, or post.
If you don’t make your payment, missed payment penalties may apply.
You may also have to pay missed payment penalties if you break other rules of your loan contract, including:
- continuing to not make repayments
- not insuring your asset
- not renewing NZTA registration.
If you have more than one loan with us and break the rules of any loan, you also break the rules of all your other loans.
Learn what to do if you’re having trouble making repayments
Fees and penalties
Your loan may incorporate some or all of the following fees. Talk to us if you have questions.
Loan fees on secured loans
| Fee | Description | Amount |
|---|---|---|
| Loan establishment fee | A one-off fee added to the loan balance when we set up your loan. | Up to $380 |
| Agent fee | A one-off fee added to the loan balance when you have been referred by one of our agents. | Up to $250 |
| Monthly admin fee | A monthly fee charged with each installment. | $7.54 per month |
| Personal Property Securities Register (PPSR) fee | A one-off fee charged to search and record details of the asset you use as security. | $10.35 |
| Early repayment fee | A one-off fee charged if you repay your loan in full before your final payment is due. | $17.00 |
| Loss on full prepayment fee | An additional fee if you repay your loan in full before the final payment is due and market interest rates have changed since your loan was set up. | Varies |
Missed payment penalties on secured loans
| Fee | Description | Amount |
|---|---|---|
| Penalty interest | 5% per year plus the interest rate stipulated in your contract calculated daily on the amount you fail to pay. | Varies |
| Repossession warning fee | Payable 14 days after a repossession warning notice is issued. | Up to $175 |
| Repossession fee | Charged when we issue a warrant to repossess. | Up to $215 |
| Recovery costs | The cost of repossessing the asset offered as security. This could include repossession agent fees, repair bills, legal fees and storage costs. | Varies |
Unsecured loans
Unsecured loans are not backed by an asset, such as a vehicle or property. Because there is no security attached to the loan, interest rates are typically higher than for secured loans and are based on your individual credit profile and financial circumstances.
The example below shows how interest rates and repayments may differ depending on credit rating. These examples are provided to help you understand how borrowing costs can vary.
Example: Borrowing $10,000 over 36 months without Payment Waiver
| Credit rating | Sample interest rate (p.a.) | Weekly payment | Difference |
|---|---|---|---|
| Excellent | 13.75% | $82.94 | -$4.62 |
| Great | 15.75% | $85.23 | -$2.33 |
| Good | 17.75% | $87.56 | $0.00 |
| Ok | 19.75% | $89.93 | $2.37 |
| Not so good | 21.75% | $92.34 | $4.78 |
All amounts in the table above are an example only and are not an offer of finance. Each weekly repayment amount is based on the interest rate mentioned and an establishment fee of $380 and a monthly maintenance fee of $7.33. Actual interest rates and fees may be higher or lower. The total amount payable for "Excellent" is $12,936.98, "Great" $13,294.95, "Good" $13,658.91, "Ok" $14,028.88, and "Not so good" $14,404.55.
When we charge interest on unsecured loans
We calculate interest daily and charge it on the same day as each of your payments, which can be weekly, fortnightly or monthly.
For example, if you make a payment every fortnight on a Wednesday, the interest is added on that day each fortnight as well.
Talk to our friendly team if you would like to know more about how interest is calculated.
Missed payments
If you miss a payment, we’ll let you know by text, phone, email, or post.
If you don’t make the expected payment, additional interest at your contract’s interest rate will be charged on the amount in arrears. Missed payment penalties may also apply.
If you have more than one loan with us and break the rules of any loan, you also break the rules of all your other loans.
Learn what to do if you’re having trouble making repayments
Fees and penalties
Loan fees on unsecured loans
| Fee | Description | Amount |
|---|---|---|
| Loan establishment fee | A one-off fee added to the loan balance when we set up your loan. | Up to $380 |
| Admin fee | A fee charged with each installment | $7.33 |
| Early repayment fee | A one-off fee charged if you repay your loan in full before your final payment is due. | $17.00 |
| Loss on full prepayment fee | An additional fee if you repay your loan in full before the final payment is due and market interest rates have changed since your loan was set up. | Varies |
Missed payment penalties on unsecured loans
| Fee | Description | Amount |
|---|---|---|
| Additional interest | Additional interest at the contract interest rate is charged on the amount in arrears. | Varies |
| Default fee | Payable at 31 days overdue. | Up to $155 |
| Default fee | Payable at 61 days overdue. | Up to $155 |
Our Product Standard Terms
Read our downloadable files below to help you prepare your application.
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