Mortgage rates

PHOTO: Upping mortgage payments by $10, $20, or $30 a week makes a huge difference to the time it takes to repay the loan, and the total interest paid.

A one-year fixed term may no longer be the best value for money for your home loan, one economist says.

Former BNZ chief economist Tony Alexander, now operating as an independent, said people fixing for a year would get a “nice, low rate”. 

ANZ, ASB and Westpac are all offering one-year rates of 3.39 per cent.

But he said a two-year rate, at about 3.55 per cent could work out to be the better deal for those looking for a short.

“The odds are now against further monetary policy easing, and tightening will eventually become more likely than any easing and interest rates will reflect this.