A smaller challenger bank, ICBC, has set a new lower bar for fixed home loan rates.
They have cut their six month rate to a new market low of 5.15%.
And they have cut their one year fixed rate to a new market low of 4.85%.
At both levels, these are good discounts to the main bank carded levels.
In addition, their cashback offer remains at "up to $25,000".
A move down at this time is unusual. Wholesale swap rates aren't shifting. And term deposit rates were not changed by ICBC at the same time.
We are now just 16 days away from the next RBNZ OCR review, when it is widely anticipated we will get a -25 bps cut, one that will flow through to floating mortgage rates. But few currently think there is much downside to fixed rates, even after the impending OCR change.
So this ICBC cut stands out as a competitive challenge. (And don't forget, ICBC is the world's largest bank, with total assets exceeding US$6.6 tln as at the end of 2024. It is two thirds larger than the largest American bank, JPMorgan Chase.)
ICBC say it is a 'special' offer, for a limited time.
It may give borrowers an interesting option. Remember ICBC's documentation is very standard, just like any other bank.
If you are a borrower, still negotiate. How flexible any bank 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.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at May 13, 2025 | % | % | % | % | % | % | % |
| ANZ | 5.49 | 4.99 | 4.99 | 4.99 | 5.29 | 5.99 | 5.99 |
 |
5.59 | 4.99 | 4.99 | 4.99 | 5.35 | 5.59 | 5.69 |
 |
5.49 | 4.99 | 4.95 | 4.99 | 5.29 | 5.69 | 5.79 |
 |
5.49 | 4.99 | 4.99 | 5.35 | 5.59 | 5.79 | |
 |
5.59 | 4.99 | 4.99 | 4.99 | 5.19 | 5.39 | 5.39 |
| Bank of China | 5.65 | 4.99 | 4.99 | 4.99 | 5.15 | 5.35 | 5.35 |
| China Construction Bank | 5.49 | 4.99 | 4.99 | 4.99 | 5.29 | 5.99 | 5.99 |
| Co-operative Bank (*=FHB only) | 5.39 | 4.89* | 5.09 | 4.99 | 5.39 | 5.59 | 5.69 |
| Heartland Bank (no new business) | 5.89 | ||||||
| ICBC | 5.15 -0.34 |
4.85 -0.14 |
4.99 | 4.99 | 5.39 | 5.49 | 5.49 |
 |
5.55 | 4.99 | 4.99 | 4.99 | 5.35 | 5.69 | 5.69 |
 |
5.49 | 4.99 | 5.09 | 4.99 | 5.39 | 5.79 | 5.89 |
Fixed mortgage rates
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Daily swap rates
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