We have part of our mortgage fixed with Kiwibank for a year, and at the start of the loan, fixed our repayments at more than the minimum permitted. In previous years, we've made lump sum repayments when we've had extra cash in the bank, which Kiwibank allow for up to 5% of the initial loan amount:

https://www.kiwibank.co.nz/personal-banking/home-loans/managing-your-loan/pay-your-loan-off-faster/

https://www.kiwibank.co.nz/personal-banking/rates-and-fees/limits/home-loans/

I'd understood this as meaning that the additional repayments (on top of our agreed regular payments) could total 5% of the loan amount, but this year they are telling me that the 5% limit includes any repayments made by having the regular repayments greater than the minimum weekly repayment. In other words, it would only be possible to make a lump sum repayment of 5% of the loan amount in a year if you had elected to make the minimum weekly repayments from the start of the loan term.

Have I just misunderstood this completely, or is Kiwibank's wording ambiguous? In the second link above, "Example 1" doesn't include any mention of "But you can only do this if you have set you repayments to the minimum allowed".