State-owned Kiwibank is the third major to cut mortgage rates this week, but it only matches ANZ and BNZ who went before. However, they also cut term deposit rates at the same time

The next cab off the rank is Kiwibank, who have announced their own fixed home loan rate reductions.

Essentially, they are matching BNZ, who in turn were following ANZ.

The Kiwibank cut matched BNZ's new lower-than-ANZ six month fixed rate at 5.09%.

All three recent cutters now have the same rates for 12 and 24 months.

But Kiwibank has declined to match BNZ's 4.99% three year rate.

However, like ANZ, but unlike BNZ, Kiwibank has matched their mortgage rate reductions with matching term deposit rate reductions. These are either -10 bps or -15 bps for all terms out to two years.

Meanwhile, we should note that the key one year swap rate fell to an even 3% yesterday. This is the lowest it has been since April 2022. Global bond market risk aversion trends are contributing to the softness.

And we should also possibly note that we are in rare atmosphere - falling interest rates when house prices are also falling and show no signs on ending that trend let alone rising. Lower interest rates are not giving the support to the housing market many assumed they would. 

The reader-reported mortgage rates are welcome, 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 banks 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 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 August 14, 2025	%	%	%	%	%	%	%
ANZ	5.14 -0.15	4.79 -0.16	4.79 -0.10	4.89 -0.06	5.09	5.79	5.79
	5.29	4.89	4.89	4.95	5.09	5.49	5.69
	5.09 -0.20	4.79 -0.10	4.79 -0.10	4.89 -0.06	4.99 -0.10	5.39	5.59
	5.09 -0.20	4.79 -0.10		4.89 -0.06	5.15	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	4.75*	4.95	4.99	5.15	5.49	5.59
ICBC	5.15	4.85	4.85	4.95	5.05	5.35	5.39
	5.36	4.89	4.89	4.95	5.09	5.39	5.39
	5.49	4.89	5.09	4.95	5.29	5.79	5.89