(Updated with reader-reported rates in table below, and the Westpac fixed rate cuts.)
In a companion move to their early floating rate change, BNZ has also trimmed their fixed home loan rates.
In fact, they have cut them all, effective Tuesday.
The net effect is that BNZ now offers the market leading rates for fixed terms of 18 months, two years and three years, and lower rates than any of its main bank rivals for the key six month and one year fixed terms as well.
These changes come even though wholesale swap rates are not shifting. In fact, wholesale swap rates are probably not going to move much even after tomorrow's anticipated OCR cut.
What we are seeing is a slow but relentless tightening of margins in the mortgage market, on competitive pressures.
Those competitive pressures come as the background economy struggles to achieve any expansion momentum.
And the housing market is hung over with excess inventories, especially as some mum-and-dad investors start quitting their 'investments' as capital gains evaporate, and healthy homes upgrade pressures come to a head on July 1.
Housing market sales activity may be rising, but it is because increasing numbers of owners are getting much more realistic about their price expectations.
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 28, 2025 | % | % | % | % | % | % | % |
| ANZ | 5.49 | 4.99 | 4.99 | 4.99 | 5.29 | 5.99 | 5.99 |
| reader reported rates | 5.29 | 4.89 | 4.85 | 4.92 | |||
 |
5.59 | 4.99 | 4.99 | 4.99 | 5.35 | 5.59 | 5.69 |
 |
5.35 -0.14 |
4.95 -0.04 |
4.89 -0.06 |
4.95 -0.04 |
5.09 -0.20 |
5.39 -0.30 |
5.59 -0.20 |
| reader reported rates | 5.29 | 4.92 | 4.85 | 4.92 | 5.04 | 5.35 | 5.55 |
 |
5.49 | 4.99 | 4.99 | 5.35 | 5.59 | 5.79 | |
| reader reported rates | 4.94 | ||||||
 |
5.49 -0.10 |
4.95 -0.04 |
4.95 -0.04 |
4.95 -0.04 |
4.95 -0.24 |
5.39 | 5.39 |
| Bank of China | 5.15 | 4.85 | 4.85 | 4.95 | 5.05 | 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 | 4.85 | 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
Select chart tabs
Daily swap rates
Select chart tabs
Comprehensive Mortgage Calculator
6 Comments
BNZ App this morning
6m - 5.29%
1Y - 4.92%
18m - 4.85%
2Y - 4.92%
3Y - 5.04%
4Y - 5.35%
5Y - 5.55%
5.29% for 6 months is very sharp, I would take that if I was renewing now.
My entire loan (2m+) is up for refix on the third.
Floating rate is below what I'm currently paying so might give it a week or two post OCR as that seems to be the window for banks to play their hand.
increasing numbers of owners are getting much more realistic about their price expectations
That suggests that prices are falling, yet the latest HPI shows a 0.3% drop for the whole of last year.
Not necessarily, just means more vendors are coming down to that price point where other vendors were making sales already, rather than holding out. It's true that more choice at realistic prices should then bring the market down further, but it could also trigger more buyers to get off the fence and decide the bottom is nigh, creating a self-fulfilling prophecy.
Self-fulfilling case of a property market just about near mid crash phase?
The graph is just like the NZ housing market, going back to the 1980's. The "return to peak" phase is where we indeed are. Buyers beware, more than ever!
STOCK MARKET PSYCHOLOGY 101 (Market Emotion cycle/ Greed & Fear cycle) [SAVE for future reference!] : r/FluentInFinance
No way a market can rise when they all need 2.5% mortgage rates to make the numbers work at current asking prices. Hence the collapse in sale volumes!
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