PHOTO: JASON DORDAY/STUFF Auckland’s prices have already dipped. In the year to the end of July they were down 3.3 per cent on the previous year.

Even a moderate slide in house prices would lead banks to re-calculate the mortgage interest rates of some homeowners next time they refixed their loans.

A global recession warning has been sounded, and New Zealand is holding its breath to see whether it impacts asset values on the home front.

But banks charge lower “special” interest rates on home loans where the borrower has more than 20 per cent equity in their home, and a slide in prices would result in any homeowners slipping below that level facing higher mortgage rates.


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