To float or fix long (or short)?

Deciding whether to fix or float your mortgage is now more complex for Kiwi homeowners. While short-term rates were recently popular, Reserve Bank data shows a growing split, with more borrowers choosing longer-term fixes for certainty.

Homeowners are weighing the benefits of lower current rates against the security of a longer fixed term. The market also sees many first home buyers (FHBs) using low-deposit loans, while new debt-to-income (DTI) limits are becoming a challenge for some borrowers.