Should You Fix Your Mortgage Now — or Wait? 

After a couple of head-spinning years where interest rates seemed to climb every time you looked away, many Kiwi homeowners are finally breathing a little easier. Rates have started to fall, and for the first time in a long time, the big mortgage question has changed. Instead of “How do I survive this rise?”, people are now asking, “Should I fix now — or wait?” 

The truth is, there isn’t one perfect answer. But there is a right answer for your life.  

If you think about what’s happening economically, we’re near the bottom of the interest rate cycle. Most experts believe rates won’t drop much further, but they’re also unlikely to climb sharply in the next year or so. That makes this moment unusual: not a boom, not a crisis — but a window of relative calm. 

That’s why many New Zealanders are fixing their mortgage for shorter terms, like one or two years. Those terms usually come with the cheapest rates, and they let you “check back in” with the market sooner. People like knowing that if rates stay low, they can take advantage again without being locked in too long. 

But there are plenty of others who choose the certainty of a longer-term fix. They’re not necessarily chasing the lowest possible rate. They just want to set it, forget it, and sleep well knowing their repayments won’t change, no matter what happens with inflation, elections, or global markets. For them, certainty has value — especially if they’ve got a young family, a tight budget, or big plans ahead. 

And then there are those who split the difference — literally. They divide their mortgage across different terms, often fixing part for a year and part for longer. It’s a very Kiwi approach: keep a foot in both camps, get a bit of flexibility, and a bit of security too. 

So how do you decide?

It helps to ask yourself the real-life questions, not just the financial ones. Are you planning to stay in the same home for a while? Do you value predictable budgeting? Would you feel stressed if rates rose in a year or two? Or do you feel comfortable taking another look in 12 months?

At Tall Poppy, our role is to help people feel confident in their decisions — whether they’re buying, selling, or simply trying to make smart financial moves at home. The opportunity right now isn’t just about chasing the lowest rate. It’s about choosing a mortgage plan that makes your life — and your future — feel more secure.