After a period where rates had been easing and sitting near recent lows, we’ve seen a fairly sharp turnaround over the past couple of weeks. Global uncertainty has pushed up wholesale (swap) rates, and that’s now flowing through to the fixed rates banks are offering.
In practical terms, that shift could add around $1,500 a year to repayments for some borrowers. It’s not a dramatic spike overnight, but it’s enough to notice.
Another factor is how banks adjust their pricing. It’s not always just the headline rates going up - sometimes it’s reduced discounts or fewer “specials,” which can quietly be pulled.
For borrowers, the key message is to be proactive. Banks don’t all move at the same time, so there can be short windows where better rates are still available. If you’re coming up to refix, it can pay to act early rather than wait and risk getting caught by further increases.
In some cases, it may even be worth reviewing your current structure, including whether breaking early makes sense, depending on the numbers.
Overall, the market has shifted from a “rates coming down” mindset to something a bit more uncertain. The best approach right now is to stay informed, get advice early, and make the most of opportunities while they’re still there.
NZ Banks are offering cash incentives to retain existing home loan clients. Jeremy of Key Mortgages summarizes with NZ Herald, whether to switch or stay depends on factors like break fees, equity, and overall costs. We can help and negotiate with your current bank to find which is the smarter move.
Key Mortgages recently joined Ryan Bridge on Newstalk ZB, to discuss the recent jump in mortgage rates and what it means for Kiwi borrowers.
Key Mortgages shares details with Good Returns how expanded low-deposit lending options may help eligible first home buyers enter the market sooner and with better pricing
As featured in Stuff, buying property with friends or family can improve affordability, but clear agreements and proper structure are essential.
Banks and Mortgages advisers discuss with New Zealand Herald, why home loan approvals may take longer as lenders apply more detailed affordability checks and tighter financial assessments.
In our recent discussion with Radio New Zealand, we shared that age alone doesn't prevent home loan approval, but lenders carefully assess retirement income and long-term repayment plans.
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