Mortgage Tips for first home buyers from top best mortgage broker in Auckland, New Zealand.

New announcement. Learn more


How do increasing interest rates affect mortgage repayments?

What's happening to 60% of Mortgages in NZ?

According to a recent article publish by NewsHub NZ, 60% of home owners mortgage interest rates are coming up for renewal in 2023. If your interest rates are about to renew, this article is for you.

Below is an example as to what the numbers look like for a household looking to refix their interest rates today (Note: don’t get caught up in the interest rates used - the example is to highlight the increase in mortgage repayments due to increased interest rates).

Let's look at an example:

12-months ago:

  • Loan Amount: $600,000

  • Interest rate: 3.59% for one-year.

  • Loan term: 30-years

  • Principal and Interest repayment structure.

The above equates to a monthly repayment of $2,725.


  • Loan amount: 588,661 (You would have paid down some of your loan amount in the past-year. This is the new amount after one-year at 3.59%).

  • Interest rate: 6.59% for one-year.

  • Loan term: 29-years (as one-year has passed).

  • Principal and Interest repayment structure.

The above equates to a monthly repayment of $3,798.

As a result, a 3% increase in interest rates have added $1,074 per month to your mortgage repayments.

If your loan amount is greater than $600,000 - you can expect the difference in mortgage repayments to be higher and vice versa if the loan amount is less than $600,000.

If you’re facing a situation where your mortgage is about to refix - get in contact with us and we can help.


The contents of this article are for information-only and may express the opinion of the writer. This article is not be taken as personalised financial advice, as everyone’s situation is different. Please always seek advice from a financial adviser before making any decisions with your personal and/or business finances.


This product has been added to your cart