Floating rates on a high

Lower interest rates are prompting Kiwis to abandon their preference for fixed over floating-rate home loan terms.

Bruce Thompson, spokesman for Kiwibank - New Zealand's biggest mortgage lender in the December quarter - says that, in January last year, 80-85 per cent of all loans were on fixed rates.

By January this year, a dramatic reversal had occurred - 80-85 per cent of borrowers chose floating rates. Those who went for a fixed rate chose short terms.

Now, he says the mix is 50:50, with those borrowers choosing to fix their rate going for a variety of short, medium and long terms.

To read the full NZ Herald story click here

Posted: 19 Apr 2009

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