How best to take advantage of the banks mortgage wars

The mortgage rate war is back on and it's good news for borrowers with rates at record lows.

So what does this mean for home buyers and homeowners?

Mortgage adviser Sara Hartigan appeared on Seven Sharp tonight and with some rates at 2.65 per cent fixed for one year, she was asked just how low rates could go.

"We've never seen rates this low before and I'd say in a couple of months you may even see them around the 2.5 per cent mark," Ms Hartigan said.

She says now is a good time for people with preexisting mortgages to check around and see if they can get a better deal.

Host Jeremy Wells also asked Ms Hartigan whether it was better to have a fixed term rate or a floating one.

"In this uncertain economic climate I would say fixed, especially if there is a little bit of doubt around job security.

"With fixing you know how much is coming out each month and it gives you a chance to budget accordingly."

The advice comes as real estate agents in Auckland are reporting increasing interest in properties selling for under $1 million.

The Real Estate Institute NZ is putting the spike down to a "post lockdown catch-up" and is cautious as to whether it will continue.

“I think it's a bit early to tell and the key indicator will be the level of unemployment over the next few months,” says Bindi Norwell, REINZ chief executive.

“But at least things are starting to pick up again now.”