Regular readers of our daily updates will have noticed the drop and weakness in wholesale swap rates.
First it was TSB, and now BNZ have sharply cut a key fixed home loan rate as a result.
BNZ has dropped its one year fixed rate by -26 bps to 4.49%. That follows TSB's similar move for the two year rate last week.
BNZ says for someone moving from the year-ago average 1-year rate of 5.19% with a $500,000 mortgage over a 25-year term, this new rate could save over $2,400 across the 12-month fixed period.
Others are sure to follow.
But the news isn't so good for savers. BNZ's Rapid Save interest rate has also been cut by -25 bps to 2.30%.
Currently, 4.49% is the lowest rate for any term in the mortgage market. And now two banks have moved to that.
We haven't seen a 4.49% rate previously since March 2022 for a two year rate, June 2022 for a one year fixed rate.
To compare mortgage rate offers in a way that includes the application and account fees costs (or break fee costs if you need to do that), and applying the impact of a cashback/legal fee reimbursement/ or other incentive, you can now use our new home loan comparison calculator. You can find it here. Or, for convenience, we have added it to the bottom of this article.
We sense that the ability to achieve meaningful discounts from carded rates is now much harder, so the impact of the incentives offered are currently playing an outsized role. 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 aspect 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. Update: An earlier version of this table had the change recorded in the 18 month column, in error.
| Fixed, below 80% LVR | 6 mths | 1 yr | 18 mth | 2 yrs | 3 yrs | 4 yrs | 5 yrs |
| as at September 30, 2025 | % | % | % | % | % | % | % |
| ANZ | 4.99 | 4.75 | 4.75 | 4.75 | 4.99 | 5.59 | 5.59 |
 |
5.04 | 4.75 | 4.75 | 4.75 | 4.99 | 5.29 | 5.49 |
 |
4.99 | 4.49 -0.26 |
4.75 |
4.75 | 4.95 | 5.09 | 5.39 |
 |
5.05 | 4.75 | 4.79 | 5.05 | 5.39 | 5.59 | |
 |
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 | 4.99 | 4.75 | 4.75 | 4.75 | 4.95 | 5.99 | 5.99 |
| Co-operative Bank (*=FHB only) | 4.99 | 4.65* | 4.75 | 4.75 | 4.99 | 5.39 | 5.49 |
| ICBC | 5.09 | 4.55 | 4.79 | 4.89 | 4.99 | 5.35 | 5.39 |
(*=FHB only) |
5.09 | 4.29* | 4.75 | 4.75 | 4.99 | 5.39 | 5.39 |
 |
5.09 | 4.75 | 4.99 | 4.49 | 4.99 | 5.39 | 5.49 |
Fixed mortgage rates
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Daily swap rates
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6 Comments
Wow, that’s a sharp drop. Perfectly positioned with my 4 tranches rolling over every 6 months.
Watch the housing take off again. 2026 could see a 7%+ lift. Hold on to your hats!
Everything is happening as have foreseen it.
This is great. We'll be an economic superpower in no time with the great wealth creator back on track. So good.
BNZ does this every time a new cycle begins, leading interest rate offerings. To gain market share ?
That's me locking in the 6 month strategy win vs the 1 year for the third time running. Refix in 2nd week of December. Has BNZ pre-empted a 50bps cut next week?
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