Our largest home loan lender strikes with wide-ranging rate cuts, grabbing market-leading levels across all the popular fixed terms - except two years. Term deposit savers suffer matching cuts

And so, the next general shift starts in earnest. Not just one rate, but all the main ones.

ANZ has announced its shift lower in response to BNZ's big one-year rate cut (and the same earlier one by TSB.

We are now back in early 2022 territory at these levels.

ASB, and Westpac will probably follow quickly now. And BNZ will also likely extend its cuts to match market heavyweight ANZ.

If recent history is any guide, Kiwibank will bring up the rear after the big Aussie banks have shown their cards in full. But recent Kiwibank behaviour indicates they don't want to lead with market-low rates. As we have noted before, they are the bank most exposed to the broker channel, so that limits how much margin they want to expose. To be fair, ASB probably faces similar margin pressure issues from the same exposure.

As the table below shows, ANZ has moved these fixed rates down by -1 bps to -26 bps.

To 'pay' for that, they have also cut their term deposit rates, and in that case the reductions are -10 bps to -25 bps across every term. After this drop, those TD rates are now market-lows. With rates for most popular terms now about 3.5%, it isn't hard to foresee sub 3% rates if these trends build over the rest of 2025.

Don't forget, the RBNZ will be reviewing its OCR level mid-next week. Markets are pricing in more than a -25 bps cut, but less than -50 bps. So basically they don't know. -50 bps is just as likely as -25 bps in this pricing.

So savers need to be prepared for sub -3% rates sooner than they would probably like.

That same wholesale market pricing sees a total of -75 bps cut by February 2026, which is only two more meetings away after this upcoming one.

We should also note that the Co-operative Bank also cut their 1 year fixed rate today by -26 bps to 4.49%. It was their only home loan rate change, although they did also cut a number of TD rates too.

And TSB still has the market leading two year rate of  4.49% which is -16 bps lower than the new ANZ 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.

Fixed, below 80% LVR	6 mths	1 yr	18 mth	2 yrs	3 yrs	4 yrs	5 yrs
as at October 2, 2025	%	%	%	%	%	%	%
ANZ	4.89 -0.10	4.49 -0.26	4.59 -0.16	4.65 -0.10	4.89 -0.26	5.49 -0.10	5.49 -0.10
	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	4.39* -0.26	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