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Floating vs Fixed: Which Mortgage Rate Is Right for You?

Mortgage Structure
Andreas Wijaya
March 2025
4 min read

When choosing a home loan, the first decision is usually: Fixed rate or floating rate?

Here's a simple breakdown:

Fixed Rate

  • Locked in for 1–5 years
  • Predictable payments
  • Break fees if you leave early

Floating Rate

  • Moves with the market
  • Flexible, can pay extra anytime
  • No break fees

Which One Should You Choose?

Fixed = Best if you prefer certainty and stable payments

Floating = Best if you want flexibility or think rates might drop

What Most Kiwis Do:

Many Kiwis split their mortgage:

Part fixed, part floating.

That way you get the best of both worlds.

Need help choosing the right loan structure?

Let's discuss your situation and find the perfect mortgage structure for you.

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