Source: Finance and Mortgage Advisers Association of New Zealand (FAMNZ)
Re: Pending RBNZ interest rate decision – “We believe there’s a clear need for an interest rate cut to help ease cost of living pressures for New Zealand borrowers and to boost home loan affordability.
With interest rates being uncertain at the moment, borrowers are considering whether to fix their mortgage rate or continue with a variable loan. Many are electing to split their loan between the two as part fixed and part variable, and this can be a good option right now as the expectation is that rates will continue to trend downwards into 2026.
There is no ‘one size fits all’ when it comes to the best mortgage product. Finance and mortgage advisers will base their advice on the specific needs of each individual customer. This varies from person to person depending on their circumstances.
What is in the best interests of one customer is different from that of another. For example those who are self-employed may not fit traditional bank lending criteria, so it’s important to discuss your situation with your adviser to obtain the loan that is most suitable.
While the major banks have many good products, borrowers should never think that they are the only source of lending. In fact very often a non-bank lender can meet a customer’s needs for either a better rate or a more flexible loan depending on the requirement. Some of these lenders are only available through a mortgage adviser.
A mortgage adviser will be able to provide the advice based on both the lending product and on your situation.”
