Do Aussies get better mortgage deals?

“Their 90-day wholesale rate is 4.45%, and the best floating home loan interest rates are around 6%, creating tighter margins on floating home loans.”

In New Zealand, though, fixed rates are more competitive, even though Cunningham noted, “fixed rates in New Zealand were still way higher than they should be” based on wholesale rates.

Margins wider on floating rates in New Zealand

Kiwis opting for floating rates may be paying more than necessary.

Cunningham highlighted that only 10% of New Zealand lending is on floating terms, yet these borrowers are paying significant margins.

“Kiwi borrowers are paying at least $400 million more interest on floating rate loans than what might be considered a fair margin,” he said, comparing the international landscape.