Home >> Glossary >> Glossary of terms

Glossary of terms

Find out the meaning of those technical terms. Click the letter that the word begins with.

A B C D E F I L M N O P R S T U V W Y

The interest paid on a loan may be either a fixed rate or a floating rate. For a fixed rate loan, the interest rate and hence payment amount is set at the date you take out your loan and remains the same throughout the term of your loan, irrespective of whether bank interest rates rise or fall. In New Zealand most banks offer six months to five year terms. Although there are seven and even ten year terms available from some banks.

Interest rates offered to customers are based on the Overnight Cash Rate OCR and will fluctuate with this rate and with general economy and financial market conditions.