A property studies expert says a new 10-year fixed-rate home loan will offer security for buyers on a tight income.

TSB Bank is offering the loan at a 5.89 percent interest rate, for a minimum deposit of 20 percent.

Emeritus Professor Bob Hargreaves from Massey University says it will attract buyers who need to manage their incomes closely and budget for a long period.

He says interest rates are at a 50-year low, and predicts they will rise over the next 10 years.

"Just on historical trends one would expect that interest rates are going to increase.

"Maybe not in the short term, but in the longer term I think almost certainly."