TSB has announced that from Friday 6th February they will be making 10 year fixed rate home loans available to customers.

A minimum deposit of 20 per cent is required and will be transferable if a borrower shifts homes within that period. The move is the latest in a mortgage war of interest-rate cuts amid debates about whether home-buyers are better off with fixed or floating mortgages.

Fixed rate mortgages tended to be for two to three years, as this provides some flexibility. ANZ spokesman Stefan Herrick said people tended to be cautious about longer-term loans "as there is greater potential for financial or personal circumstances to change during the term of the loan, and the possibility of costs arising from exiting the loan early".

However, TSB chief executive Kevin Murphy said the new offer would appeal hugely to those new to home ownership, and also to people looking to refinance their home loan and to residential property investors.

"To know what your interest rate will be and you can budget on that for a longer period - for people who need to manage their incomes closely, I think this will be very attractive."

The next longest fixed home loan rate is BNZ's seven year fixed home loan at 6.89 per cent followed by Kiwibank's five year loan at 5.89 per cent. 

Source: NZ Herald

If you'd like to find out more about your home loan options - whether you are a first home buyer or looking to review your current arrangement - get in touch.