Interest rate rises are the talk of all of New Zealand's towns at the moment.

I've been hearing a lot about what rising interest rates will mean for homeowners and business owners' costs, especially in the regions.

The Official Cash Rate has now lifted by 25 basis points and is forecast to reach 3.75 per cent by the end of the year.

There are indications the rises will continue through the next couple of years, meaning banks' interest rates could rise to 8 per cent or more.

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If you haven't already done your sums on interest costs it's time to do so, and it's time to think long-term.

For every $100,000 of debt you have, a .25 per cent interest increase means an extra $20 a month to budget for.

So that $100,000 that could be costing you $5750 a year at 5.75 per cent might cost $8000 a year when rates hit 8 per cent - that's $180 more in interest a month.

Buying a rental? Buying a business? Don't forget to factor in the cost of interest and its expected increases over the next couple of years. This will affect your operating budget and return on investment.

Apart from the basic decision of whether to fix or float your loan and, if you're fixing, for what term, there are other things to consider that might help cut your borrowing costs:

Explore and buy a membership. Memberships can come with several benefits including, with some organisations, deals to receive a discount on borrowing.