Homeowners are being offered record low mortgage rates as the summer season approaches, with interest rates dropping as low as 3.85%.
However, as competition for customers is growing, experts are urging caution.
Banks across New Zealand are dipping below the four percent mark in their mortgage offers, HSBC has the lowest rate on the market at 3.85%, while ANZ, Westpac and ASB are offering 3.95% for one year and BNZ 3.99% for a fixed two years.
Auckland Mortgage Broker, Kit Jackson says it’s important for clients to get advice about how to structure their mortgage properly.
"From my point of view, it’s very important clients don’t just see a shiny rating in a bank and say 'that’s the right thing for me.'
"It’s really important to get some advice about what’s really going to benefit them over time in terms of savings and how much they actually pay on their home loan over the life of the loan," Mr Jackson said.
Mr Jackson says it's a big time in the property market and that while a lot of the banks are trying to help home buyers into properties, he suggests they are just trying to get a fair share of the market share.
ASB Chief Economist, Nick Tuffley says lower mortgage rates just mean lower debt serving costs.
"We’ve seen a really record run this year of rates falling over the second half of this year, now we’re actually starting to see some signs where the longer-term rates are being pushed up by pressures.
"It’s a little bit of easing of trade tensions in the United States," Mr Tuffley says.