Long-term rates an attractive strategy

The bank has conducted analysis on the best borrowing strategy as long-term rates begin to rise, and short-term rates continue to fall over the past few months. 

The rise in long-term loans has been driven by rising wholesale rates, while short-term loans are more influenced by government bonds, as well as wholesale markets.

ANZ said that while fixing on short terms has "paid off" for borrowers over the past year, it could be the right time to lock in longer-term rates before mortgage rates rise further.

The bank's forecasters, led by chief economist Sharon Zollner, said longer-term rates may offer better "time protection". Economists believe rates have troughed, and expect the RBNZ to raise the official cash rate next year as the outlook improves.