ASB matches the new lower ANZ two year mortgage rates, and launches a low one year fixed rate (although not as low as Kiwibank). Now Westpac has cut too

Update: the table below now also includes the Westpac rate cuts at 4:10 pm today.

The settling-in around the new slightly lower home loan rates is extending.

Post the OCR change, one and two year fixed rates look like they will fall about -30 bps. This is a notable market rate shift but not the full -50 bps that floating rates were cut by.

Today ASB has trimmed its short one and two year rates to match their main rivals on a carded basis.

ASB has essentially followed ANZ, especially to the 4.99% two year rate level, and we would expect the other three main banks to change their rate cards to this same price-point soon. Among the challenger banks, ICBC has done so already.

But ASB has also pushed the boat out slightly further with its 5.25% one year carded fixed rate. This is low but not the lowest level from any bank for the popular one year term. Kiwibank claims that. That gives it only a 4 bps advantage over ANZ but still +6 bps higher than Kiwibank. The other two main banks are yet to respond with adjustments to their rate cards. But you can be sure they will have changed their off-card app rates and their discretion levels for front-line staff.

Paying for all of this are more falls in term deposit rates. In fact, some of those TD rate cuts exceed to home loan rate cuts. Low loan demand allows them to protect margins in this way.

The reader-reported mortgage rates are fluid but may be less frequent now, so please record them if you have them. We need you to record them in the comment section below, which helps us stay on top of this fast-changing corner of the home loan rates market.

And still 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.

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.

Here is the updated snapshot of the lowest advertised fixed-term mortgage rates on offer from the key retail banks at the moment. (Update: Apologies to Kiwibank because an earlier version of this table did not include its recent update. It does now.)

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at February 24, 2025	%	%	%	%	%	%	%
ANZ	5.89	5.29	5.19	4.99	5.29	5.99	5.99
current reader-reported rates
	5.89	5.25 -0.24	5.19	4.99 -0.30	5.35 -0.24	5.79	5.79
current reader-reported rates	5.79	5.25	5.12	4.99	5.29	5.69	5.69
	5.89	5.55	5.39	5.29	5.59	5.69	5.79
current reader-reported rates	5.79	5.49
	5.79	5.19		5.19	5.59	5.79	5.89
current reader-reported rates
	5.89 -0.10	5.29 -0.20	5.19 -0.10	4.99 -0.30	5.39	5.39	5.39
current reader-reported rates	5.89	5.49	5.19		5.39	5.39	5.39
Bank of China	5.85	5.49	5.35	5.25	5.49	5.49	5.49
China Construction Bank	5.99	5.57	5.39	5.44	5.59	6.40	6.40
Co-operative Bank (*=FHB only)	5.89	5.39*	5.49	5.49	5.69	5.79	5.79
Heartland Bank		5.49	5.39	5.39	5.45
ICBC	5.89	5.29	4.99	5.19	5.39	5.49	5.49
	6.09	5.69	5.49	5.49	5.59	5.79	5.79
	5.89	5.35	5.49	5.29	5.59	5.79	5.89