Home Loan Rate Report: Mortgage rates could press even lower

  • The RBNZ’s massive response to the COVID-19 situation has seen mortgages press lower over recent months and borrowers can lock in record low interest rates now, with fixed term rates as low as 2.55%.
  • Our forecasts suggest rates could get even lower over the year ahead; fixing and then rolling shorter term mortgages terms is forecast to be the cheapest option over a 5-year time horizon.
  • While mortgage interest rates look set to stay extremely low over the next several years, borrowers are prudent to plan to deal with higher interest rate costs over the long run, rather than budget on rates remaining this low indefinitely.


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Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commerce at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

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