With all the focus by home loan borrowers on short fixed rates (expecting rates to fall further soon), BNZ chops its six month fixed rate to under 6%, the lowest of any bank

BNZ has announced two fixed home loan rate cuts, both to the shortest fixed terms.

They say 90% of their customers taking out home loans on fixed terms of 12 months or less as they look to make the most of the drop in interest rates.

They have cut -50 bps from their six month fixed rate, taking it to 5.99%. That makes it the only six month rate below 6% from any bank. And it is now -40 bps lower than the next lowest bank offer.

They also trimmed their one year fixed rate - very slightly - to 5.95%. That isn't very special however - Kiwibank already has a 5.79% one year rate, Heartland a 5.65% carded rate.

But carded rates are one thing. Actual off-card rates are often lower.

Competition is pointed at present. And to avoid queering the pitch, a lot of home loan rate activity is going on 'off-card'.

We have cleared the table below of these reader-reported mortgage rates, because they are so fluid. We need to be reporting current rates from readers. Let us know what you are seeing.

Almost all banks will have some flexibility in their rate offers. So the carded rates are just the start. Negotiate. How flexible they may be will depend on the strength of your financials.

One useful way to make sense of the changed home loan rates is to use our full-function mortgage calculator which is below.

At this time, it doesn't appear that BNZ is making matching term deposit rate cuts. 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. Break fees will be minimal in a rising market. But they become important in a falling market, like now. Don't forget, when you sign up for a fixed rate you are signing a contract. You have been given the right to break it in legislation but the bank has the right to reclaim its costs when you do so. This is NOT evidence of banks making it hard to switch (as some borrowers, and sadly some journalists seem to think).

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. Updated: with reader reported rates. (Be aware that the reader-reported rates are unofficial and may be quite fuzzy themselves.)

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at November 21, 2024	%	%	%	%	%	%	%
ANZ	6.50	5.99	5.79	5.69	5.69	6.19	6.19
current reader-reported rates	6.29	5.59	5.75	5.65
	6.39	5.99	5.79	5.69	5.69	5.79	5.79
current reader-reported rates	6.29	5.79	5.59	5.59	5.59	5.69	5.69
	5.99 -0.50	5.95 -0.04	5.89	5.69	5.69	5.59	5.59
current reader-reported rates	5.99	5.79	5.69	5.65
	6.49	5.79		5.69	5.69	5.69	5.69
current reader-reported rates
	6.45	5.99	5.89	5.65	5.65	5.59	5.59
current reader-reported rates	5.99	5.79	5.79	5.65	5.65
Bank of China	6.65	5.99	5.79	5.69	5.69	5.49	5.49
China Construction Bank	6.50	5.99	5.79	5.69	5.69	6.40	6.40
Co-operative Bank	6.39	5.99	5.89	5.75	5.69	5.69	5.69
Heartland Bank		5.65	5.59	5.55	5.55
ICBC	6.39	5.99	5.79	5.65	5.59	5.49	5.49
	6.60	6.15	5.79	5.69	5.69	5.69	5.69
	6.45	5.69	5.89	5.69	5.69	5.69	5.69