Housing Minister Nick Smith says it is inevitable interest rates will rise over the next two years.
The Reserve Bank has said the official cash rate could increase by 2% from 2014 to the beginning of 2016, which could mean interest rates on first mortgages of 7 - 8%.
Speaking on TV3's The Nation programme on Saturday, Dr Smith said interest rates had been at historic lows for some time, and at some point they would increase again.
He said it was inevitable as the economy improved that the 50-year low mortgage interest rates would rise.
"What we want to do as a Government is to make sure that our fiscal policy and the way in which we are managing the economy keeps access for New Zealanders to low interest rates for as long as possible."
Dr Smith said the Government's policies are aimed at increasing the number of houses available.
Labour's housing spokesperson said the party would, if elected, exempt first-home buyers from new Reserve Bank rules that restrict the capacity of banks to lend to first-home buyers with little or no deposit, and would build 100,000 affordable starter homes.
Labour's housing spokesperson said the party would, if elected, exempt first-home buyers from new Reserve Bank rules that restrict the capacity of banks to lend to first-home buyers with little or no deposit.
The new rules mean no more than 10% of a bank's mortgage lending can be to people with lower than 20% deposits. Mr Twyford said 80% of first-home buyers say they cannot get that level of desposit together and so are locked out of the housing market.
Mr Twyford said the Government has been prepared to intervene to help Warner Brothers make a movie here, and should intervene to help first-home buyers.