Despite another bank trimming home loan rates, the range of rates among all banks is narrowing for the most competitive terms. BNZ matches its latest cut with term deposit reductions

BNZ is the latest main bank to trim home loan rates.

The changes today (Wednesday) ensure it is offering the lowest carded rates of any of their main rivals for any of the main, popular fixed terms.

BNZ was the bank that kicked off the latest set of cuts just two weeks ago. Rapid-fire but small trimmings seem to be the order of the day. ASB and ANZ have also made recent small reductions.

Today's shifts are also not large. Apparently no bank wants to get out of line, especially when winning new business is hard - and that is because the main real estate selling season is misfiring this year.

The range of one year rates is only 11 bps for one year among the main banks (7.24% to 7.35%) but 70 bps among all banks (6.69% to 7.39%).

The range on two year rates is only 10 bps for two years among the main banks (6.79% to 6.89%), whereas the range among all banks for this term is only 50 bps (6.45% to 6.95%).

BNZ has matched their home loan rate reductions with some term deposit reductions - but the TD reductions may be easier to avoid because they are mainly in the unpopular 2 year and longer maturities.

Wholesale swap rates ticked lower after the dovish RBNZ moves, but have been stable since.

Obviously you should negotiate and shop around. Most banks will discount their carded home loan rates if you have strong financials. You shouldn't need them but if you are uncomfortable negotiating, a broker can often be helpful. But be aware some brokers won't offer you the best over the whole market, only the banks they have approved connections to in their "lending panel." And clearly bank mobile managers are there to pitch their company's own product.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below. (Term deposit rates can be assessed using this calculator).

And if you already have a fixed term mortgage that is not up for renewal at this time, our break fee calculator may help you assess your options. But break fees should be minimal in a rising market. They will become important in a falling market however.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at March 6, 2024	%	%	%	%	%	%	%
ANZ	7.35	7.24 -0.15	6.89 -0.26	6.79 -0.10	6.65 -0.10	7.34	7.34
	7.39	7.29 -0.10	6.89 -0.26	6.85 -0.04	6.65	6.55	6.55
	7.29 -0.10	7.24 -0.05	6.89 -0.10	6.79 -0.06	6.65	6.55	6.55
	7.39	7.35		6.89	6.75	6.69	6.59
	7.39	7.29	6.95	6.89	6.65	6.59	6.39
Bank of China		7.09	6.99	6.89	6.79	6.69	6.59
China Construction Bank	7.19	7.09	6.89	6.75	6.49	6.40	6.40
Co-operative Bank	7.39	7.29 -0.06	7.15	6.89	6.75	6.75	6.75
Heartland Bank		6.69	6.59	6.45	6.19
ICBC	7.19	7.05	6.95	6.85	6.59	6.49	6.49
	7.45	7.45	7.25	6.95	6.79	6.69	6.59
	7.39	7.39	7.19	6.75	6.75	6.79	6.79