To start this week, ASB has announced rate reductions for fixed home loan rates.
And for term deposits.
The mortgage cuts are timid however. They don't take any rate lower than any main rival's equivalent current offers. Even after the cuts, they are only matching the other big banks at the one year term, and are higher than some in all other terms.
It is a similar pattern on the term deposit side - basically matching the lowest rates their main rivals already offer.
Of note however is that they no longer have any 4% rates for any term out to two years. They had been unique with their 4% six month rate, but that is gone now.
We have more here on what has been happening to term deposit rates recently.
And we have some analysis of bank margins and the recent tracking of the bank NIMs (Net Interest Margin).
For banks, the headline arithmetic is mortgage rates at 4.90% for one year fixed and paying term depositors 3.85%. That is an unusually skinny rate set. Something will give.
However, in the meantime, these skinny settings probably mean you will be lucky to get adjustments from carded rates, either on the home loan or the term deposit fronts. But you should always ask.
Here is the 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 June 23, 2025 | % | % | % | % | % | % | % |
| ANZ | 5.29 | 4.95 | 4.89 | 4.95 | 5.09 | 5.79 | 5.79 |
 |
5.29 -0.16 |
4.89 -0.06 |
4.89 | 4.95 | 5.09 -0.06 |
5.49 -0.10 |
5.69 |
 |
5.29 | 4.89 | 4.89 | 4.95 | 5.09 | 5.39 | 5.59 |
 |
5.29 | 4.89 | 4.95 | 5.29 | 5.59 | 5.79 | |
 |
5.29 | 4.89 | 4.95 | 4.95 | 4.99 | 5.39 | 5.39 |
| Bank of China | 5.08 | 4.78 | 4.78 | 4.88 | 4.95 | 5.35 | 5.35 |
| China Construction Bank | 5.15 | 4.85 | 4.85 | 4.95 | 4.95 | 5.99 | 5.99 |
| Co-operative Bank (*=FHB only) | 5.25 | 4.85* | 4.99 | 4.99 | 5.25 | 5.49 | 5.59 |
| ICBC | 5.15 | 4.85 | 4.85 | 4.95 | 5.05 | 5.35 | 5.39 |
 |
5.45 | 4.95 | 4.95 | 4.95 | 5.15 | 5.39 | 5.39 |
 |
5.49 | 4.95 | 5.09 | 4.95 | 5.29 | 5.79 | 5.89 |
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2 Comments
If you compare interest rates to a couple of years ago, its a decrease
If you compare interest rates to what we became accustomed to in 2018,2019 at around 3.25% Interest on mortgages are about 50% more expensive.
That was back when the Reserve Bank made stable and progressive decisions - then they lost their way
Agreed. Long term average is around 7-8%. The RBNZ has allowed a generation of NZ new house owners to fall into the debt trap prison, in a way that a lifetimes work will allow little escape.
Unless there is more rampant inflation and then everyone gets hit.
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