Due to the rising interest rates across the board home owners are choosing to lock in their interest rate for a fixed term rather than missing out on lower rates that are getting higher and moving toward increasing again.

Until recently most people were fixing at a 1 year rate but now the trend seems to be to split between fixing and floating. For some people splitting their loan mortgage will give them a chance to move to lower rates if the economy moves that way. However for most experts the economy will not return to lower interest rates for some time and by holding out with floating loans they may be avoiding the inevitable.

Six months ago you could have fixed your loan term in the 4% range, now they will be lucky to fix within 1-1.5% of that figure. To most experts the interest rates will go up to the high rates we saw toward the end of the last decade. Although we are still reliant on what is happening globally New Zealand has been largely insulated from much of the doom and gloom which sees us emerging as a strong economy going forward.

Although some experts are saying wait and see most are now moving into the lock it in camp and think that if home owners wait they will soon be paying 7% and higher on their mortgages.