ASB is the next major bank to adjust fixed rates and they have been more restrained in their moves than Westpac or ANZ. ASB also reprised a 5% TD rate. Kiwibank follows with their own rate hikes

(This story has been updated with Kiwibank rate changes.)

ASB is the next major to raise home loan interest rates. 

But they have been more restrained than either ANZ or Westpac.

In fact, they cut their six month rate to 4.49%, a -10 bps shift that brings it into line with all their main rivals.

They didn't move their one year or 18 month rates.

But they did move their two and three year fixed rates up, by +14 bps and +20 bps respectively.

This means ASB's rates for these terms are at lower levels that ANZ or Westpac for the key two year rate, but higher than BNZ and Kiwibank.

They left their four and five year rates unchanged, but they are still higher than their key rivals.

At the same time, they have raised all their term deposit rates by between +5 bps (for two years) and +50 bps (for five years). They are making a big noise about their new five year rate, which is now 5.00% and market-leading. That term isn't popular with many savers however.

5% rates by any bank for any term is a level worth noting however. We haven't seen that since August 2024.

It may however signal that higher long term fixed home rates are on the way. Borrowers may well be expecting steeper rate curves as we push into 2026.

5%+ term deposit rates challenge residential housing investment net yields, and in many cases residential housing investment gross yields too. These investors are knocked at both ends - lower rents and higher borrowing costs, along with better no-work yield alternatives.

Update: Kiwibank has added +10 bps to their 6 month, 3 year, 4 year and 5 year carded mortgage rates. They have also raised all their term deposit rates for terms 1-5 years.

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.

Negotiate. How flexible banks may be will depend on the strength of your financials.

One other 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 March 24, 2026	%	%	%	%	%	%	%
ANZ	4.49	4.59	4.89	5.09	5.39	6.09	6.19
	4.49 -0.10	4.59	4.75	4.95 +0.14	5.39 +0.20	5.55	5.69
	4.49	4.49	4.69	4.89	5.29	5.49	5.69
	4.49	4.59 +0.10		4.89	5.35 +0.10	5.79 +0.10	5.89 +0.10
	4.49	4.59	4.85	5.19	5.29	5.39	5.59
Bank of China	4.38	4.48	4.48	4.58	4.88	5.28	5.28
China Construction Bank	4.49 -0.20	4.49	4.69 +0.20	4.89 +0.35	5.09 +0.19	5.39 +0.29	5.49 +0.29
Co-operative Bank	4.59 +0.10	4.59 +0.10	4.89 +0.20	4.89 +0.26	5.39 +0.20	5.75 +0.20	5.89 +0.20
ICBC	4.39	4.39	4.49	4.59	4.99	5.09	5.19
	4.69	4.49	4.69	4.89	5.15	5.55	5.69
	4.59	4.39	4.99 +0.24	4.89 +0.20	5.29 +0.30	5.55 +0.36	5.69 +0.40