However, existing mortgage holders in New Zealand will soon also experience a sharp lift in repayments. Unlike Australia, the bulk of Kiwis are on fixed rate mortgages of two years or less. This means that most Kiwis that originated mortgages at rock-bottom pandemic rates have yet to impacted by the RBNZ’s aggressive rate hikes. Towards the end of this year, when these fixed rate mortgage terms start to expire, many Kiwi borrowers will be forced to refinance to significantly higher (perhaps double) mortgage rates. That is when the impact of the RBNZ’s aggressive monetary tightening will truly be felt by Kiwi households.

Source: Stuff August 30, 2022 09:08 UTC