Nz Mortgage Interest Rates Forecast 2025. When will interest rates go down? In broad terms, every percentage point increase in interest rates adds $1000 per year per $100,000 borrowed.

A $500,000 loan on 6 percent a year costs $30,000 in interest, but at 7 percent it costs $35,000, plus any principal repayment. As a result, these increases in the cost of borrowing.