Buying guide
Fixed, floating or split mortgage?
Understand your options
6 December 2023
AI summary
Choosing the right mortgage structure is crucial for homeowners. A fixed mortgage provides payment certainty with a set interest rate for an agreed term but offers less flexibility for extra repayments. In contrast, a floating mortgage allows for lump-sum payments without penalty, but your repayments can change at any time.
Many Kiwis use a split mortgage, combining fixed and floating portions to balance security with flexibility. This strategy allows you to tailor your loan to your financial situation and risk appetite.
How does a fixed mortgage work?
Choosing a fixed rate term
There may be some repayment flexibility with a fixed mortgage
How does a floating mortgage work?
Why do floating rates change?
What are the different types of mortgages?
Examples of possible mortgage structures
Getting experienced advice
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