Rate rises yet to really bite

Many homeowners will find their new mortgage interest rate will be close to double the old one. (Image: file)

Mon, 01 Aug 2022

The Reserve Bank of New Zealand has been increasing the official cash rate in an effort to hike interest rates and ease demand in the economy.The difficulty is that it takes a long time for changes in interest rates to actually flow through to the real economy, with most households fixed into mortgage terms of one and two years.A BusinessDesk analysis of mortgage lending data shows that since July last year – when rates first began to rise – only an estimated 16% of total mortgage debt has had to be re-fixed at a rate of more than 5...

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