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2026 kicks off with our largest home loan lender raising its floating rate (as a profit improver) but others are not likely to follow

Personal Finance / news
2026 kicks off with our largest home loan lender raising its floating rate (as a profit improver) but others are not likely to follow

ANZ has raised its floating mortgage rates by +10 bps, effective Thursday, January 29 for existing customers.

The rise is effective Thursday, January 15 for new customers.

An ANZ spokesperson said it is "a small change to our floating and flexi rates to align with market conditions".

This is how the banks now compare:

  Floating
  %
ANZ, after this change 5.79
ASB 5.79
BNZ 5.84
Kiwibank 5.65
Westpac 5.89
   
Cooperative Bank 4.99
Heartland Bank 5.30
SBS Bank 5.84
TSB 5.79

It's an easy profit improvement for the nation's largest home loan lender because it already had an advantage over its main rivals, and this change doesn't erode ANZ's net position. But there is an apparent 14 bps advantage to Kiwibank now. However, if any clients were going to shift there from any of the main banks, they would have done so by now. These others have had their rate levels announced since November 26, 2025.

Since the last OCR change, both bank bill rates have been essentially unchanged. Short (1 year) swap rates have been stable too. ANZ is adding to these rates because they can, and not because of any money cost pressures.

Fixed mortgage rates

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Daily swap rates

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Source: NZFMA
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Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA
Source: NZFMA

Comprehensive Mortgage Calculator

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1 Comments

This is just the first salvo, of multiple rises in mortgage rates for 2026.

With inflation reflaring again, we will see 1.5 to 3% higher mortgages by years end of 2026 imho.

Japanese debt prices are now moving up fast and with the need for the USA  to rollover big Govt debt loads, who will be the willing buyer? and at what price?

Couple that within NZ, with the still thousands of stale, unsold housing stockpiles throughout NZ........ those openly begging for supposed housing market gains in 2026, are yet again, on the hopium smoking pipe, consuming the next lot of weak green shoots!

Mike Hosk in particular, will again be force fed the housing loss humble pie, as he did at year end 2025, when fletting gains fizzled into net losses.

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