BNZ cuts fixed home loan rates, following Westpac down. Challenger banks are going even lower, with Coop Bank and SBS Bank with very low FHB specials, and ICBC has a new market-low one year fixed rate

Although the main focus after the RBNZ's OCR rate cut was the timing and matching of floating rate cuts, there have now started some notable fixed rates reductions.

The shift lower was led by Westpac last week. Now BNZ has matched them.

But equally interesting is the new one year fixed rate offer from Chinese bank, ICBC.

They have launched a 4.55% one year rate.

And they have extended their cashback offer out to a maximum of $30,000.

The last time a one year fixed rate was as low as 4.55% was in July 2022, and it was also ICBC at this time who were ending a 4.45% one year rate. A month earlier 'everyone' had a one year rate at about 4.45%.

Among the main banks, most of the market-leading levels have now shifted back to Westpac, and now BNZ.

The lowest six month fixed rate is 5.08% offered by the Bank of China.

For one year, the lowest carded offers are 4.75% from Westpac and BNZ.

But we should also note the 3.99% one year rate from SBS - available only for first home buyers.

For eighteen months, it is again Westpac and BNZ with the lowest at this time, 4.75%.

For two years, these two main banks feature as well, joined at 4.75% fy TSB.

For three years fixed, BNZ, Westpac, Bank of China and China Construction bank offer the 4.95% market leading rate.

For four years the lowest carded rates are now down to 5.09% by BNZ and Westpac.

And for five years, the lowest is from Bank of China at 5.35%

Meanwhile, we should note that the key one year swap rate fell to 2.84% after the OCR cut - and has stayed there, little-change since This is the lowest it has been since April 2022 and probably opens up the opportunities for home loan rates to remain soft - at least for the other majors to cut to also match Westpac soon.

And we should possibly also note that the housing market is in rare atmosphere - falling interest rates when house prices are also falling and showing no signs of 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 26, 2025	%	%	%	%	%	%	%
ANZ	5.14	4.79	4.79	4.89	5.09	5.79	5.79
	5.12	4.79	4.79	4.89	5.09	5.49	5.69
	5.09	4.75 -0.04	4.75 -0.04	4.75 -0.14	4.95 -0.04	5.09 -0.30	5.39 -0.20
	5.09	4.79		4.89	5.15	5.59	5.79
	5.09	4.75	4.75	4.75	4.95	5.09	5.39
Bank of China	4.98	4.68	4.68	4.78	4.88	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)	5.09	4.69*	4.79	4.89	4.99	5.39	5.49
ICBC	5.09	4.55 -0.14	4.79	4.89	4.99	5.35	5.39
(*=FHB only)	5.19	3.99*	4.79	4.89	5.09	5.39	5.39
	5.09	4.75	4.99	4.75	4.99	5.39	5.49