Westpac is making a comprehensive set of retail interest rate changes in response to fast moving rises in wholesale money costs.
Fixed home loan rates are going up, and some term deposit rates are going up too.
But not all.
The Red Bank has added +30 basis points (bps) to all its fixed rates for two years and longer terms, but cut its six month rate by -20 bps. Its one year and 18 month rates are unchanged.
On the term deposit front, rates for an 18 month deposit are up +10 bps, and for two to five years they are up +30 bps.
Westpac has made a big deal about how much wholesale swap rates have shifted since November 25, pre the last Official Cash Rate change (which was a -25 bps cut).
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 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 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 here.
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 December 9, 2025 | % | % | % | % | % | % | % |
| ANZ | 4.79 | 4.49 | 4.49 | 4.49 | 4.79 | 5.39 | 5.39 |
 |
4.85 | 4.49 | 4.45 | 4.49 | 4.79 | 5.09 | 5.15 |
 |
4.79 | 4.49 | 4.45 | 4.49 | 4.79 | 4.99 | 4.99 |
 |
4.75 | 4.49 | 4.49 | 4.85 | 5.19 | 5.39 | |
 |
4.69 -0.20 |
4.49 | 4.45 | 4.75 +0.30 |
5.05 +0.30 |
5.29 +0.30 |
5.29 +0.30 |
| Bank of China | 4.68 | 4.28 | 4.38 | 4.58 | 4.78 | 4.95 | 4.95 |
| China Construction Bank | 4.79 | 4.49 | 4.49 | 4.49 | 4.79 | 4.99 | 4.99 |
| Co-operative Bank | 4.79 | 4.45 | 4.49 | 4.49 | 4.79 | 4.99 | 5.19 |
| ICBC | 4.69 | 4.25 | 4.29 | 4.59 | 4.79 | 4.99 | 4.99 |
 |
4.99 | 4.49 | 4.49 | 4.65 | 4.85 | 4.99 | 4.99 |
 |
4.99 | 4.39 | 4.75 | 4.49 | 4.89 | 5.19 | 5.39 |
Fixed mortgage rates
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Daily swap rates
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26 Comments
Yeah I was commenting last week that I didn't think it would be long before banks might start raising mortgage rates given swap activity (they don't have any option really to manage their interest rate risk of their balance sheets).
Don't think this was the intended outcome the RBNZ was looking for with their last OCR cut - in fact its the complete opposite. When the general public catch on that rates are on the rise again they won't be spending the extra dollar this year on xmas pressies and holiday activities - they'll be worrying themselves about refixing at a higher rate again in the future and getting ready for that (then the stats will come out that spending is down and GDP is extremely weak and there are no green shoots despite ASB on the news last night saying there are signs that green shoots are finally here....).
The RBNZ drop rates with the intention of increasing aggregate demand on the economy and creating stimulus - but by cutting when they should have remained steady the have, in my opinion, shot themselves in the foot. I don't think swaps would have gone up (to the extent they have post OCR review - as swaps were screaming 'don't cut' before the review) if the RBNZ held steady - and then mortgage rates wouldn't be on the rise gain. As the new Governor said they need to be solely fixated on inflation - and inflation in the CPI was showing a clear and steady trend right up to the upper mandated limit and yet they cut - I mean, WTF?? (do they not realise that economies can also shrink and aggregate demand for goods and services be completely squashed because of inflation and not just deflation?? - and yet they are always fixated on deflation and not inflation?)
It wouldn't surprise me if we're back into OCR rises at first review next year - and if the swaps keep going vertical it might be a 50bps rise. Over 2 months before the next policy review as well - so any chance of an emergency meeting and rate rise before Feb 18th? And they will continue to say that they are all about creating financial stability - while they manufacture the financial instability we experience on a daily basis. And banks will keep saying 'green shoots' are here as they try to sell mortgages to people while GDP stats keep coming out saying the economy is weak (actually no green shoots) because we keep messing up our OCR by either cutting when we should be raising (when inflation indicators are flashing red) or raising when we should be cutting (inflation already dropping and economy strangled by lack of aggregate demand).
I remember a year or so ago when spruikers were still dreaming of ever-rising house prices. It’s much quieter now that reality has set in
In real/inflation adjusted terms, this still looks (to me) like the mother of all bubbles popping (something similar to a head/shoulder pattern forming with next down leg quite significant back to like 2013 prices in real terms):
https://fred.stlouisfed.org/series/QNZR628BIS
And we may only be less than halfway through the unravelling (in real terms - but uncertain in nominal terms) - but you won't see a chart like the above on stuff.co.nz or on 3news where its always 'greenshoots' or 'the recovery' in the housing market are here - then 6 months later its no change (or prices still dropping like on my property trademe watchlist).
I can still see this happening if inflation stays high and the bond market keeps selling off: "Jamie Dimon warns US interest rates could hit 8%." If that plays out, house prices could fall in nominal terms.
8% is quite possible, and if it does eventuate, the mother of all recessions is sure to follow. The roller coaster ride continues....
Yeah it’ll be super bad, a deflationary bust in all the interest rate sensitive assets. The bust will roll through crypto, equities, bonds and real estate. Oct 2025 marks the start of the bust.
The big questions are: How long will people keep faith in the USD given their level of printing and; How long will people hold out for future gains for AI stocks - as many are jittery already and looking for the slightest sign things are tipping before bailing out and locking in their profits.
This happening when a property recovery hasn't even begun.
Be Quick
We pulled out of an property purchase a couple of weeks ago due to moisture concerns so we're still looking.
The narrative from the agents (even a buyers' agent) is that prices are going up in our area on the back of the falling ocr, but you can't see the sales prices without calling everyone up to gather your own data.
What's the best ways to get a reliable idea of what the local market is doing, and where it's headed?
What would you do if you were looking to purchase in the next 3 to 4 months?
Wait for six.
Waiting that long is not really an option unfortunately due to family circumstances
Sorry to hear that, I wish you and your family all the best.
It's age related for borrowing purposes rather than a breakdown so not the worst circumstance, but thanks for the thoughts U4Mism
Happy 35th birthday!
Thanks, but not there yet!
It's actually the in-laws who are nearing retirement but still somehow being offered a 30 year mortgage. I'm not complaining, it makes the difference between them renting and us together being offered enough lending for a home and income setup
Start mapping properties on a spreadsheet and using the likes of trademe for watchlisting and track any changes in: Asking price, title, delists and relists (happening all the time where vendors change agents thinking it is their fault they aren't getting 2021 prices).
Map out areas you are interested in with sold properties and when, then correlate to the REINZ reports to see peak prices sold and then reduce by the % decrease with inflation adjusted also so you can gauge what the more realistic current market price is likely to be.
Note what sells better e.g standalone, certain section sizing, double glazing, off street parking, fully insulated etc to get a better idea of what adds to the cost.
Consider mortgage rates arew likely to rise net year and factor in additional costs weekly/annually into your offer. Then make your own judgement on what you're willing to offer understanding it will likely drop in value for a time also, and factoring in any work needing done from a building report or LIM. Hard ball the agent, never believe them, ensure you confirm any offer has been communicated to the vendors and get this confirmation in writing in case they try and swindle you.
I may have missed a few things but hopefully this helps in some way.
Good guidance thanks a lot.
My wife has been monitoring the listings and changes and I've been doing some of the numbers but haven't been that comprehensive yet. Let's see how we go
Buy if you want/need to, at your own pace, and ignore the REA narrative BS.
I caved in and bought a Wellington property recently. I initially wanted to rent but there's a lot of trash on the market and they still seem to want top dollar. It's only a little more expensive per week to buy.
The other comments focus on the macro data, which is where you have to start. But you learn just as much by looking at the individual places you've studied on paper. People are getting really good at making places look great in the pics online but when you get there it can be a very different story. Get a hold of a standard building report and use the same checklist yourself.
If you know what features matter to you, ignore the places that don't have them - it's generally more expensive to add things like a new kitchen, bathroom or garage than to buy a place that already has them. There's real value if someone's already done the work. I paid a bit above my original budget to get what I wanted, but I think I'll save more longer-term. It never seems to get less expensive to renovate.
Having said that, try to find a place with upside or potential to add value - just in case you can afford to do that down the line. If you intend to stay in the area, think about what you'll need at a later stage of life and whether the house is adaptable (access, single-level etc).
You will still have to sacrifice something on your wishlist. No place has everything. Try to rank the features and choose the right thing to lose! I don't have a garage, but I have a carport and a view of the harbour.
If you think you may need to buy at auction, attend a few as practice while you have no emotions involved. Check out the tactics the agents use like making house bids against one or zero actual buyers to get the unconditional price up.
The other risk in Wellington is job security, so unfortunately you need to buy a place you know will be easy to sell if you really have to down the track.
Fall in love with a place but be prepared to walk away if you have to. There will always be another.
Great tips, especially this one which I had not yet considered
Get a hold of a standard building report and use the same checklist yourself.
What are some good ways to get past vendors playing around with vendor bids and counter offers with no multi offer situation? Just leave 'em to sweat?
At the peak of the market, I was thinking of selling my personal home and as part of my research, I attended a batch of auctions for other places nearby. I saw two cases where I thought bidders were pressured to go higher when there was no need (one young couple had their kids with them - extra pressure).
You sit in this room and it feels like you're in a fish tank full of sharks. Agents in suits pour in and hover around the bidders they know. They'll ask you if you want to make the opening bid and then it's on. So first of all, try not to have a "minder" on your shoulder - they are not helping you, they are working for themselves and their boss.
The auctioneer is allowed to make bids on behalf of the seller as long as they declare that is what they are doing. But for a newbie, in the heat of the moment, it's easy to forget where these bids are coming from.
So suss out how many real bidders are in the room (or on the phone). If it looks like there's strong, genuine interest and the price goes above your budget, simply be prepared to walk away and try another day. But if it appears to be just you, stop when you've made the highest bid - don't take the bait when the auctioneer makes a vendor bid to get you higher or even to the reserve.
The highest bidder gets first right to negotiate immediately after the auction, so hold tight and that person will be you anyway. It could be the seller is unrealistic and won't sell. But then again, you will now witness the agents putting pressure on the seller to come down closer to what you're offering. Come up a bit, make a fair offer if the place has what you want. Just stick to your well-considered budget.
'Fix in 26'...?
Not the market XD
A friend of mine was very happy to see the OCR drop so fast, given he has to refix in ~1 year. Well, he may be offered rates higher than what he currently has. He went short, being advised rates WILL be lower in 2 years, always makes me cringe when people use the future tense when it should be the conditional one. Not sure if it's a cultural or language thing in Europe (outside UK) but they're far more cautious over there.
Does anyone have much experience with the Chinese banks? Especially as someone not in Auckland? They seem to have overtaken TSB and the like as the competitive ones on paper, though we used to be able to haggle ANZ to give us a good deal. Since '21 ANZ have just been on an increasingly useless slide, first removing our business banking contact person, then later being increasingly horrible to deal with.
About a decade ago we used HSBC for mortgages and they were competitive at the time, but being outside Auckland, anytime we wanted something required us to fly up...
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