The Co-operative Bank matches Westpac with steep hikes in longer term fixed mortgage rates, but a cut for its 6 month rate to the market's lowest. It also raised long-term TD rates

For the record, a second bank has raised home loan rates after Westpac NZ opened the door to recognising the recent upswing in wholesale money costs.

The Co-operative Bank matched the Westpac pattern by cutting its six month rate by 14 (basis points (bps), while adding 30 bps to its two year and longer fixed rates.

One result of this set of changes is that the Co-operative Bank now has the lowest six month fixed rate in the market at this time. At the same time, it has the highest two year fixed rate.

The Co-operative Bank also raised its term deposit (TD) rates for terms of two, three and four years, by 20 bps and 30 bps, and returned its three and four year TD offers to over 4%.

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 use our 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 12, 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	4.65 -0.14	4.45	4.49	4.79 +0.30	5.09 +0.30	5.29 +0.30	5.49 +0.30
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