KEY POINTS:
Two-thirds of people with mortgages are worried about rising interest rates, according to a survey by Research New Zealand.
The poll found rising home loan interest rates were a concern for 68 per cent of those with mortgages, with 24 per cent being very concerned and 44 per cent somewhat concerned.
"As you would expect, the level of concern decreased with rising income," Research New Zealand director Emanuel Kalafatelis said.
Of those earning $40,000 or less, 83 per cent said they were concerned or very concerned, compared to 62 per cent of those earning $70,000 or more a year.
Mr Kalafatelis said it appeared the Reserve Bank's monetary policy was starting to have an impact on the outlook of people with home loans.
The Reserve Bank left the Official Cash Rate at 8.25 per cent in September, having hiked the rate in the four reviews since March.
Mr Kalafatelis said that Reserve Bank Governor Allan Bollard had told Parliament's finance and expenditure committee recently that the bank's monetary policy was effective, but it had taken longer to have an effect because of high commodity prices, the housing boom and an excess of global investment funds.
Banks have recently cut interest rates on fixed-term home loans, with Kiwibank announcing a three-year fixed rate of 8.6 per cent, half a per cent lower than rivals.
The poll was taken between September 12 and 20. It was completed by 206 home owners with mortgages and has a maximum margin of error of 4.6 per cent.
- NZPA
